149Central Cash and Network Settlement FunctionMoves were also madeRM©PCdžLC©RFC©CLjAGCLAW©MD©the central cash sortingand network settlementmechanism. Q©N?PR©MD©RFC©CDžMPRQ©RM©GKNPMTC©RFC©JCTCJ©MD©AMLdžBCLAC© Central Cash Operationsthe Bank continued to focus on minimising the annualaverage return ratio for cheque payments, in 2014.2FCQC©CDžMPRQ©N?GB©MDž©UGRF©RFC© ?LIQ©?LLS?J©?TCP?EC©PCRSPL©P?RGM©DMP©RFC©WC?P©FMJBGLE©džPK©?R© ̎©?Q©compared to the banking sector average of 4.0%.+MTCQ©UCPC©?JQM©K?BC©RM©PCdžLC©RFC©CLjAGCLAW©MD©RFC©central cash sorting and network settlement mechanism.As such the following value additions were introducedduring the year to supplement the services alreadyavailable to both personal and corporate bankingcustomers: Cash management solutions for personal banking customers Corporate payroll payment system Online pension payment system © ,CU©?BBGRGMLQ©RM©RFC© 2+©15'2!&© 2013 2014 10.?PRLCP©@?LIQ 2 9Finance companies 5!FCOSC©!JC?PGLE©.PMACQQ
150 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceSubsidiary: Siyapatha Finance PLCThe company was Given this consistent performance registered by?U?PBCB©RFC© JI?© 1GW?N?RF?©$GL?LAC©.*!©RFC©AMKN?LW©U?Q©?U?PBCB©P?LIGLE©@W©$GRAF©0?RGLEQ© RFC© JI?©P?LIGLE©@W©$GRAF©0?RGLEQ©*?LI?©*RB©DMP©RFC©*?LI?©*RB©DMP©RFC© second consecutive year.second consecutive year. Total operating 2013 2014OVERALL SCOPE OF BUSINESS: income Rs Mn Rs Mn .PMdžR©@CDMPC©R?V1GW?N?RF?©$GL?LAC©.*!©GQ©?©DSJJW©MULCB©QS@QGBG?PW© .PMdžR©?NJCP©R?V 835 1,198operating under the Sampath Group umbrella. Having Total assetspreviously operated as a specialised leasing company, 350 467GL©©1GW?N?RF?©$GL?LAC©U?Q©PCEGQRCPCB©?Q©?©džL?LAC© 221 260AMKN?LW©SLBCP©RFC©$GL?LAC© SQGLCQQ© AR©,M©©MD© 8,986 10,4182011 and is now licensed to carry out all authorised@SQGLCQQ©?ARGTGRGCQ©MD©?©džL?LAC©AMKN?LW©GLAJSBGLE©BCNMQGR© +C?LUFGJC©RFC©AMKN?LWQ©AF?LLCJ©CVN?LQGML©CDžMPRQ©?JQM©mobilisation, lending, leasing, hire purchase, pawning / continued its steady progress, with new locations beinggold loans and factoring among others. added to the existing network during the year. These CDžMPRQ©?PC©CVNCARCB©RM©AMLRGLSC©GL©RFC©DMPRFAMKGLE©WC?P©REVIEW OF PERFORMANCE DURING THE as well, with measured steps being taken to expand theYEAR: company’s presence at key strategic locations across the island.'L©R?LBCK©UGRF©RFC©AF?LEC©GL©@SQGLCQQ©KMBCJ©GL©©in the current year too, the company’s business focus Furthermore, in 2015, the company would also look intoAMLRGLSCB©RM©QFGNJ©RMU?PBQ©EPMUGLE©ICW©@SQGLCQQ©JGLCQ© the possibility of divesting a portion of its shareholding by?QQMAG?RCB©UGRF©džL?LAC©AMKN?LGCQ © Q©QSAF©UFGJC© way of a listing on the CSE. While further supporting thesupporting existing high performance business lines, a expansion plans of the company, this move is expected toAMLACPRCB©CDžMPR©U?Q©K?BC©RM©EPMU©TMJSKCQ©MD©?JJ©MRFCP© spearhead the company’s aspirations to be ranked withinbusiness avenues as well, in a bid to boost the bottom RFC©2MN©©džL?LAC©AMKN?LGCQ©GL©RFC©AMSLRPW line.Meanwhile, by leveraging on the growing popularity ofhire purchase schemes in the SME and Micro marketsegments across the country, the company was able tosecure a 15.9% asset growth, well ahead of the industryaverage. As in the past, the company’s well-establishedJC?QGLE©?LB©D?ARMPGLE©MDžCPGLEQ©?JQM©AMLRGLSCB©RM©NCPDMPK©well, making satisfactory contributions to the bottomline.
151Subsidiary: SC Securities (Pvt) LtdAmidst this slow growth However, a slight turnaround was observed in theenvironment, the K?PICRQ©GL©1CNRCK@CP©©UFCPC©?©LMRGAC?@JC©QFGNJ©company stepped up in favour of the equity markets was seen particularlyCDžMPRQ©RM©QRPC?KJGLC© among retail investors, as low interest rates continued tooperations by diminish the appeal of interest bearing instruments.implementing stringent ,MR?@JW©RFC©PCESJ?RMP©RMM©U?Q©QCCL©NJ?WGLE©?©NPM?ARGTC©cost control and prudent role in encouraging this trend vis-à-vis strengthening ofdžL?LAG?J©K?L?ECKCLR© the regulatory compliance and the discipline framework.in a bid to derive a more Moreover, a series of regional road shows conducted byresilient business model. SEC added a considerable boost to the level of interest shown by foreign investors.OVERALL SCOPE OF BUSINESS: 0CTCLSC 2013 2014The stock broking arm of the Sampath Group, SC .PMdžR©@CDMPC©R?V Rs Mn Rs Mn1CASPGRGCQ©.TR©*RB©GQ©?©DSJJW©MULCB©1S@QGBG?PW©MD© .PMdžR©?NJCP©R?V©1?KN?RF© ?LI©.*! ©0CEGQRCPCB©?Q©?©BC@R©?LB©COSGRW© Total assets 25.2 42.8KCK@CP©džPK©MD©RFC©!MJMK@M©1RMAI©#VAF?LEC©RFC© company is governed by the regulatory framework of the 1CASPGRGCQ©?LB©#VAF?LEC©!MKKGQQGML©MD©1PG©*?LI?©1#!© 362.4 282.7?LB©RFC©!MJMK@M©1RMAI©#VAF?LEC©!1# ©2FC©AMKN?LW©MNCP?RCQ©DPMK©GRQ©FC?B©MLjAC©GL©!MJMK@M©GL©?BBGRGML©RM© The renewed interest in the stock market is seen asthe branches located in Kandy and Matara, which carry an encouraging sign for the prospects of the companyout the promotion of share trading activities in those GL©RFC©AMKGLE©WC?PQ ©'R©GQ©FMNCB©RF?R©GLQRGRSRGML?J©areas. investors and high-net worth individuals too would rally towards investing in the stock market in the yearsREVIEW OF PERFORMANCE DURING THE ?FC?B ©'L©PC?BGLCQQ©RM©?@QMP@©RFCQC©EPMURF©NPMQNCARQ©YEAR: RFC©AMKN?LW©CVNCARQ©RM©PCT?KN©RFC©CLRGPC©@?AI©MLjAC© operation which would see the commissioning of a fullyThe average performance of the local stock market yet GLRCEP?RCB©QMNJU?PC©NJ?RDMPK©GL©AMKNJG?LAC©UGRF©RFC©!1#©again marked the performance of the company, which K?LB?RC©QRGNSJ?RGLE©RFC©GLRPMBSARGML©MD©\"4.©?LB©!!.©U?Q©PCLJCARCB©GL©RFC©PCQSJRQ©DMP©RFC©WC?P © KGB©RFGQ©QJMU© operations for share market transactions. With vendorEPMURF©CLTGPMLKCLR©RFC©AMKN?LW©QRCNNCB©SN©CDžMPRQ©RM© negotiations already complete, the process is expected tostreamline operations by implementing stringent cost get underway in early 2015.AMLRPMJ©?LB©NPSBCLR©džL?LAG?J©K?L?ECKCLR©GL©?©@GB©RM©derive a more resilient business model.
152 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceSubsidiary: Sampath Centre Ltd5GRF©?BBGRGML?J©LJMMP©space being rented outduring the year, rentalincome grew by0Q© ©+L©GL©©?©YoY increase of 46.7%.OVERALL SCOPE OF BUSINESS: Sampath Centre1?KN?RF© ?LI©.*!Q©FC?B©MLjAC©@SGJBGLE©JMA?RCB©?R© From an operational perspective, led by the Monitoring1GP©(?KCQ©.CGPGQ©+?U?RF?©!MJMK@M©©GQ©MULCB©?LB© Committee of Safety all employees were encouragedK?L?ECB©@W©RFC©1?KN?RF©!CLRPC©*RB ©0CLR?J©GLAMKC© to participate in regular training sessions and safetyBCPGTCB©DPMK©PCLRGLE©LJMMP©QN?AC©PCK?GLQ©RFC©NPGLAGNJC© BPGJJQ©?Q©N?PR©MD©RFC©MLEMGLE©CDžMPRQ©RM©SNB?RC©Q?DCRW©PCTCLSC©QMSPAC©DMP©1?KN?RF©!CLRPC©*RB © procedures. Moreover, as part of the contingency K?L?ECKCLR©QRP?RCEW©RFC©džPQR©CTCP©JGTC©APGQGQ©All regulations pertaining to occupational health and K?L?ECKCLR©PSL©MD©RFC© !.©U?Q©BMLC©ML©RF©-ARM@CP©safety also comes under the purview of the Sampath 2014 to gauge the Bank’s readiness to switch to the!CLRPC©*RB©UFGAF©PCK?GLQ©RFC©K?GL©PCQMSPAC©SLGR©RF?R© remote operational platform when required.BPGTCQ©RFC© ?LIQ© SQGLCQQ©!MLRGLSGRW©.J?L© !. ©REVIEW OF ACTIVITIES FOR THE YEAR:5GRF©RFC©RF©?LB©RF©LJMMP©QN?AC©@CGLE©PCLRCB©MSR©BSPGLE©RFC©WC?P©PCLR?J©GLAMKC©EPCU©@W©0Q© ©+L©GL©2014, a YoY increase of 46.7%. Due mainly to routinemaintenance of basic infrastructure and amenities, costsDMP©RFC©WC?P©GLAPC?QCB©@W©0Q© ©+L©GL© .PMdžR©@CDMPC©R?V 2013 2014.PMdžR©?NJCP©R?V©©©©©©©©©©©©©©©© Rs Mn Rs Mn 102.9 160.4 94.8 151.2
153Subsidiary: Sampath InformationTechnology Solutions Ltd*CTCP?EGLE©ML©RFC© RFC©AMKN?LW©CVRCLBCB©GRQ©QMNJU?PC©OS?JGRW©?QQSP?LAC©strength of its business and testing, hardware provisioning, infrastructurepartnerships, the maintenance and document management solutions tocompany continued secure a number of key corporate clients during the year.to enrich the existing Consequently, the resultant 46.7% volume growth wasportfolio of offerings. UCJJ©?FC?B©MD©RFC©džL?LAG?J©WC?P© OVERALL SCOPE OF BUSINESS: ,MR?@JW©FMUCTCP©RFC©@MRRMK©JGLC©BCAPC?QCB©@W© ̎© due to mainly changes in the accounting estimates on1?KN?RF©'LDMPK?RGML©2CAFLMJMEW©1MJSRGMLQ©*RB©1'21© property, plant and equipment and the higher costswhich began operations in 2006, is mainly focused on involved in servicing this broader market. Meanwhile,BCTCJMNGLE©QMNJU?PC©QMJSRGMLQ©RM©RFC©džL?LAG?J©K?PICR © ongoing process improvements and stringent cost KMLE©MSP©AMPNMP?RC©AJGCLRQ©@?LIQ©?LB©džL?LAC© control measures were deployed, in a bid to curb furtherAMKN?LGCQ©AMKNPGQCB©RFC©K?GL©AJGCLRCJC©DMP©1MNJU?PC© escalation of costs.Development. The domain knowledge gained over theNCPGMB©F?Q©CL?@JCB©1'21©RM©CVN?LB©GRQ©MNCP?RGMLQ©GLRM© 0CTCLSC 2013 2014QMNJU?PC©BCTCJMNKCLR©'2©QCPTGACQ©MSRQMSPAGLE©T?JSC© .PMdžR©@CDMPC©R?V© Rs Mn Rs Mnadded services to hardware maintenance, document .PMdžR©?NJCP©R?V©management services, system hosting facilities, hardware Total assets 101.7 149.2and print management services. 25.2 19.8 26.0 7.8REVIEW OF PERFORMANCE DURING THEYEAR: 132.1 234.2As of now, having focused primarily on servicing the 2M©PCGLDMPAC©GRQ©NMQGRGML©GL©RFC©AMSLRPWQ©QMNJU?PC©LCCBQ©MD©RFC©%PMSN©GL©©?©AMLACPRCB©CDžMPR©U?Q© development space, in 2014, the Company also kickmade to extend the business focus to service a broader QR?PRCB©RFC©'1-©©ACPRGdžA?RGML©NPMACQQ©DMP©QMNJU?PC©range of corporate clientele, with a greater emphasis development, with the commencement of the project life-ML©NPMTGBGLE©QNCAG?JGQCB©QMJSRGMLQ©DMP©RFC©džL?LAG?J© AWAJC©NPMACQQ©TGQ c TGQ©?©AMKNPCFCLQGTC©$ 0©QMJSRGML©DMP©QCARMP ©0CAMLdžESPGLE©RFC©@SQGLCQQ©KMBCJ©GL©RFGQ©K?LLCP© the parent company. Deemed to be a pilot project that UMSJB©QNC?PFC?B©?©QSNCPGMP©AMKKCPAG?J©MDžCPGLE©RFGQ© $ 0©QMJSRGML©GQ©?©BWL?KGA©NPMNMQGRGML©RF?R©MDžCPQ©LJCVG@JC© customisation options. \"SPGLE©RFC©WC?P©1'21©?JQM©JMMICB©?R©DSPRFCP©PCdžLGLE©GRQ© AMPC©@?LIGLE©QMJSRGML©UFCPC@W©CDžMPRQ©UCPC©K?BC©RM© CLPGAF©RFC©DSLARGML?JGRW©MD©RFC©MDžCPGLE©RM©DC?RSPC©?©KSJRG faceted banking module. Meanwhile, leveraging on the strength of its business partnerships, the company continued to enrich the CVGQRGLE©NMPRDMJGM©MD©MDžCPGLEQ ©-D©N?PRGASJ?P©LMRC©GQ©RFC© J?SLAF©MD©RFC©#$2©.-1©.?WKCLR©!?PB©1MJSRGML©GLRPMBSACB© in partnership with Spectra Technologies of Hong Kong. From a long term perspective, such partnerships are also widely seen as the catalyst in penetrating both K?GLQRPC?K©?LB©LGAFC©QMNJU?PC©BCTCJMNKCLR©K?PICRQ©GL© RFC©1MSRF© QG?L©0CEGML©GL©RFC©LCVR©©©©WC?PQ 1MDRU?PC©\"CTCJMNKCLR© PC?©MD©1'21
154 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceBranch Network '1* ,\"˔5'\"#© 0 ,!©© 2+1 08 (?DžL?© 220 Branches District Branches 01 Kilinochchi 326 ATMs District Branch 01Mullaitivu District Branch 01 02 Trincomalee Having substantially increased the branch footprint in the past four years Branch Branches District following the 2010 strategic expansion drive, growth in the network did Mannar Vavuniya 04 continue during the year, albeit at a District District more moderate pace than that seen in Branches the past few years.08 06 AnuradhapuraBranches District Branches Puttalam District Polonnaruwa G4-8 12 District Batticaloa District Branches 03 Branches Kurunegala 03 06 District Branches Branches Matale District 26 14 Kandy 05 07 District Branches Branches Branches Branches Kegalle Ampara District District Moneragala 06Gampaha Nuwara Eliya District District District 04 Branches 03 Badulla Branches61 Colombo District District Branches Hambantota DistrictBranches 10 Ratnapura District Branches Kalutara 06 District Branches 09 08 06 Branches Branches Branches Galle Matara District District
155 Branch name Address 2CJCNFMLC©,M©© $?V©,M© E-mail Branch CodeCENTRAL PROVINCE © © [email protected] © © [email protected] 90Dambulla ,M©© LSP?BF?NSP?©0M?B©\"?K@SJJ? © © [email protected] 85 © © [email protected] 190Digana ,M©©+?FGW?LE?L?©0M?B©\"GE?L?©0?H?UCJJ? © © [email protected] 101 ©©© 80Galewela ,M©!©)SPSLCE?J?©0M?B©%?JCUCJ? ©©© © [email protected] © 220Gampola ,M©©.?L?@MIIC©+?U?RF?©%?KNMJ? ©©© © [email protected] 2233838 7Hatton ,M©©\"GK@SJ?©0M?B©&?RRML © [email protected] © 123Heerassagala ,M ©5GJJG?K©%MN?JJ?U?©+?U?RF?©&CCP?QQ?E?J?© © [email protected] Kandy © © [email protected] 100 © © [email protected] 32Kandy - Super ,M©©\"?J?B?©4CCBGW?©)?LBW © © [email protected] © © [email protected] 133Kandy City Centre 1FMN©,M©*© ©*CTCJ©-LC©)?LBW©!GRW©!CLRPC© © © [email protected] 25 Building, Dalada Veediya, Kandy © © [email protected] - Metro ,M©©!PMQQ©1RPCCR©)?LBW © © [email protected] 184Katugastota ,M©©+?B?U?J?©0M?B©)?RSE?QRMR? © © [email protected] 195Kundasale ,M©©\"GE?L?©0M?B©)SLB?Q?JC © © [email protected] ,M©© ©©2PGLAMK?JCC©1RPCCR©+?R?JC © © [email protected] 84Menikhinna ,M© ©+?B?U?J?©0M?B©+CLGIFGLL? © © [email protected] 51,?U?J?NGRGW? ,M©©%?KNMJ?©0M?B©,?U?J?NGRGW? © 152,SU?P?©#JGW? ,M©©*?UQML©1RPCCR©,SU?P?©#JGW? 150.CP?BCLGW? ,M©© ©.CP?BCLGW?©0M?B©)?LBW 163.SQQCJJ?U? ,M©©,SU?P?©#JGW?©0M?B©.SQQCJJJ?U? 105.GJGK?R?J?U? ,M©©!MJMK@M©0M?B©.GJGK?R?J?U?0GIGJJ?E?QI?B? ,M©©)?LBW©0M?B©0GIGJJ?E?QI?B?Wattegama ,M© ©)?LBW©0M?B©5?RRCE?K?EASTERN PROVINCEAkkaraipattu ,M©©1SJ?GK?L©1FMNNGLE©!MKNJCV©+?GL©1RPCCR© © © [email protected] 111 Akkaraipattu © © [email protected] 62Ampara ,M©©\"©1©1CL?L?W?IC©0M?B© KN?P? © © [email protected] 107Batticaloa ,M©©2F?K?P?GICLW©0M?B© ?RRGA?JM? ©©© 065-2228242 [email protected] 139 ©©©©©Batticaloa 02 ,M ©©2PGLAM©0M?B© ?RRGA?JM? © [email protected] 121 © [email protected] 167Chenkalady +?GL©0M?B©!FCLI?J?BW © © [email protected] 112 © [email protected] 125Dehiattakandiya ,M©$©©,CU©2MUL©\"CFG?RR?I?LBGW? © © [email protected] 172Kalmunai ,M©©.MJGAC©1R?RGML©0M?B©)?JKSL?G © [email protected] 115 © © [email protected] 177Kaluwanchikudy &MQNGR?J©0M?B©)?JSU?LAFGISBW ©© © [email protected] 208 2250807 © [email protected] 185Kantale ,M©© EP?@MBFG©0M?B©)?LR?JC © © [email protected] 124Kattankudy ,M©©+?GL©1RPCCR©)?RR?LISBW© © © [email protected] 130Kinniya ,M©©©©+?GL©0M?B©90GEFR©1GBC;©)GLLGW?© © © [email protected] 126 © [email protected] ,M©©+?GL©1RPCCR©+SRRSP © 66,GLRF?TSP ,M© ©+?GL©1RPCCR©,GLRF?TSP ©Oddamavady !MJMK@M©0M?B©+?T?BGAFCL?G©-BB?K?T?BW ©© 2258210.MRRSTGJ !?QQGK©+MSJ?TG© SGJBGLE©+?GL©1RPCCR©.MRRSTGJ ©Sainthamaruthu Main Street, Sainthamaruthu - 16 ©Trincomalee ,M©©!CLRP?J©0M?B©2PGLAMK?JCC ©NORTHERN PROVINCEChankanai Main Street, Chankanai © © [email protected] 164 © © [email protected] 169Chavakachcheri )?LBW©0M?B©!F?T?I?AFAFCPG © © [email protected] 128 © © H?DžL? KEP Q?KN?RF JI 120Chunnakam ,M©©)©)©1©0M?B©!FSLL?I?K © © [email protected] 171 © © [email protected] 148(?DžL? ,M©©*GLI©0M?B©-Dž©1R?LJCW©0M?B©(?DžL? © © [email protected] 147 © © [email protected] 174Kayts 1SPSTGJ©0M?B©)?WRQ © © [email protected] 119 ©©Kilinochchi Unit 1-4, Antonipillai Building, Kilinochchi 2264950 © [email protected] 129 ©Manipay ,M©©(?DžL?©0M?B©+?LGN?W © © [email protected] 186 © © [email protected] 55Mallavi 2FSLLSI?G©0M?B©+?JJ?TG © [email protected] 170Mannar ,M©©$GCJB©1RPCCR©5?PB©,M ©+?LL?P,CJJG?BW ,M ©©(?DžL?©0M?B©,CJJG?BWThirunelveli .?J?JW©0M?B©2FGPSLCJTCJG©,MPRF©(?DžL?Vavuniya ,M ©©1R?RGML©0M?B©4?TSLGW?Vavuniya Super ,M ©&MPMUN?R?L?©0M?B©4?TSLGW?NORTH CENTRAL PROVINCEAnuradhapura Super 268, Maithripala Senanayake Mw, Anuradhapura © © [email protected] 21 ©
156 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceBranch NetworkBranch name Address 2CJCNFMLC©,M©© $?V©,M© E-mail Branch CodeNORTH CENTRAL PROVINCE CONTD. LSP?BF?NSP?©,CU©2MUL ,M©©+?GRFPGN?J?©1CL?L?W?IC©+?U?RF?©,CU© © © [email protected] 168 Town, Anuradhapura © © [email protected] 154 © © [email protected] 110Aralaganwila ,M©©,CU©2MUL© P?J?E?LUGJ? [email protected] © © 38Hingurakgoda ,M©©\"©1©1CL?L?W?IC©4CCBGW?©&GLESP?IEMB? [email protected] [email protected] 203Kaduruwela ,M© ©\"F?PK?QGPG© SGJBGLE©+?GL©1RPCCR© [email protected] 149 Kaduruwela [email protected] 138Kahatagasdigiliya ,M©© LSP?BF?NSP?©0M?B©)?F?R?E?QBGEGJGW? © © 48Kekirawa ,M©©+?GL©1RPCCR©)CIGP?U? © ©,MAFAFGW?E?K? ,M©©.SRR?J?K©0M?B©,MAFAFGW?E?K? © ©Thambuththegama ,M©©!© LSP?BF?NSP?©0M?B©2F?K@SRRCE?K? © ©© 2275072NORTH WESTERN PROVINCEAlawwa ,M©©©%GPGSJJ?©0M?B© J?UU? ©© © [email protected] 53 2279463Anamaduwa ,M©©%?JE?KSU?©0M?B© L?K?BSU? © © [email protected] 143Chilaw ,M©©!MJMK@M©0M?B©!FGJ?U © © [email protected] 108Dankotuwa ,M©©,?RR?LBGW?©0M?B©\"?LIMRSU? © © [email protected] 196Giriulla ,M© ©,CEMK@M©0M?B©%GPGSJJ? © © [email protected] )SPSLCE?J?©0M?B©&CRRGNMJ? © © [email protected] 95 ©© 187Kuliyapitiya ,M©©+?B?KNC©0M?B©)SJGW?NGRGW? 2281866 © [email protected] ©© 23Kurunegala Metro ,M © ©!MJMK@M©0M?B©)SPSLCE?J? © © [email protected] Super ,M©©,CEMK@M©0M?B©)SPSLCE?J? © © [email protected] 215Madampe ,M©©,CU©2MUL©+CB?E?K?©0M?B©+?B?KNC © © [email protected] 6Maho ,M© ©+MP?EMJJ?E?K?©0M?B©+?FM © © [email protected] ,M©©!FGJ?U©0M?B©+?P?UGJ? © © [email protected] 189 2296288 197Mawathagama ,M©©)SPSLCE?J?©0M?B©+?U?RF?E?K? © © [email protected] 194 ©,?P?KK?J? ,M©©©©©)SJGW?NGRGW?©0M?B©,?P?KK?J? © © [email protected] 109,?RR?LBGW? ,M©©)SJGW?NGRGW?©0M?B©,?RR?LBGW? ©© © [email protected],GI?UCP?RGW? ,M©©)SPSLCE?J?©0M?B©,GI?UCP?RGW? 2245270 © [email protected] 99 © 132.?LL?J? ,M©©,CEMK@M©0M?B©.?LL?J? © [email protected] 102 ©.SRR?J?K ,M©© ©)SPSLCE?J?©0M?B.SRR?J?K © [email protected] 166Wariyapola ©Wennappuwa ,?UGLL?©-LjAC©©1FMNNGLE©!MKNJCV©)?JSE?KSU?© © [email protected] 156 0M?B©5?PGW?NMJ? © [email protected] 44 ,M© ©!MJMK@M©0M?B©5CLL?NNSU? 30SABARAGAMUWA PROVINCEBalangoda ,M©© ?PLCQ©0?RU?RR?©+?U?RF?© ?J?LEMB? © © [email protected] 97 © © [email protected] 49Deraniyagala ,M©©,MMPG©0M?B©\"CP?LGW?E?J? © © [email protected] 20Eheliyagoda ,M©©0?RL?NSP?©0M?B©#FCJGW?EMB? © © [email protected] 43Embilipitiya ,M©©+?GL©1RPCCR©#K@GJGNGRGW? © © [email protected] 41 © [email protected] 64Kalawana ,M© ©!©+?L?L?©)?J?U?L? ©© © [email protected] 160 © © [email protected] 103Kegalle ,M©© ©)?LBW©0M?B©)CE?JJC ©©© ©© © [email protected] 188Mawanella ,M©©,CU©)?LBW©0M?B©+?U?LCJJ? 2266466.CJK?BSJJ? ,M© ©+?GL©1RPCCR©.CJK?BSJJ? © © [email protected] 33 © © [email protected] 2010?K@SII?L? ,CU©.P?BCQFGW?©1?@F?© SGJBGLE©0?K@SII?L? © © [email protected] 2050?RL?NSP? ,M©©©©+?GL©1RPCCR©0?RL?NSP?0SU?LUCJJ? ,M©©4CW?LEMB?©0M?B©0SU?LUCJJ?Warakapola ,M©©)?LBW©0M?B©5?P?I?NMJ?SOUTHERN PROVINCEAhangama ,M© ©+?R?P?©0M?B© F?LE?K? © © [email protected] 182 © © [email protected] 179Akuressa ,M©©.GR?@CBB?P?©0M?B© ISPCQQ? © © [email protected] 72Ambalangoda ,M©© ©,CU©0M?B© K@?J?LEMB?
157 Branch name Address 2CJCNFMLC©,M©© $?V©,M© E-mail BranchAmbalantota © [email protected] CodeBaddegama ,M©©\"©2GQQ?©0M?B© K@?J?LRMR? ©©© © [email protected] 104Beliatta ©©© © [email protected] 118 ,M ©©%?JJC ?BBCE?K?©0M?B ?BBCE?K? © [email protected] 180Deniyaya © © [email protected] 14 ,M©©\"GAIUCJJ?©0M?B© CJG?RR? ©© [email protected] 216Dickwella 2273255 © [email protected] 204Elpitiya ,M© ©+?GL©1RPCCR©\"CLGW?W? © © [email protected] 35Galle Super © © 159Galle Bazaar ,M ©©+?GL©1RPCCR©\"GAIUCJJ? © © [email protected] ,M©©0MW?J© SGJBGLE© K@?J?LEMB?©0M?B©#JNGRGW? [email protected] 181Habaraduwa ,M©©5?AIUCJJ?©0M?B©%?JJC © © [email protected] 206Kamburupitiya )PGQFL?© SGJBGLE©©,M©-JB©+?R?P?©0M?B© © [email protected] 141Karapitiya .CRRGE?J?U?RRC©%?JJC © © [email protected] Super ,M©©*?LCPMJJC©1SNCP©!CLRPC©+?R?P?©0M?B© © [email protected] 10Matara Bazaar Habaraduwa © © [email protected] 153Middeniya ,M©©+SJ?RGW?L?©0M?B©)?K@SPSNGRGW? © © [email protected] 158Morawaka ,M©$©&GPGK@SP?©0M?B©)?P?NGRGW? © © [email protected],CJSU? ,M©©&?IK?L?©0M?B©+?R?P? © © [email protected] 15Sooriyawewa ,M©©,CU©2?LE?JJC©0M?B©)MRSUCEMB?©+?R?P? © © [email protected] 54Tangalle @CWQGLEFC© SGJBGLE©5?J?QKSJJ?©0M?B©+GBBCLGW? © 157Tissamaharama 0?L?UCCP?© SGJBGLE© ISPCQQ?© ©\"CLGW?W?©0M?B© © © [email protected] 116 Morawaka 28Weligama \"CJJ?U?©0M?B©+?GL©1RPCCR©,CJSU? © © [email protected] ,M©© K@?J?LRMR?©0M?B©1MMPGW?UCU? © [email protected] 209 ,M©©+SFSBS©+?U?RF?©2?LE?JJC © [email protected] ©© [email protected] 93 ,M©©©©+?GL©1RPCCR©2GQQ?K?F?P?K?W? 2237058 [email protected] 46 ©© [email protected] 161 ,M©©+?R?P?©0M?B©5CJGE?K? 2254002 [email protected] 145 [email protected] 56UVA PROVINCE ,M©©\"F?PK?BSRF?©0M?B© ?BSJJ? © © [email protected] 74 ,M©©©+?GL©1RPCCR© ?LB?P?UCJ? © © 146 Badulla ,M©©+?FGW?LE?L?©0M?B© G@GJC © © [email protected] 81 Bandarawela +?BSP?NNCPSK?© SGJBGLE©)?R?P?E?K?©0M?B© [email protected] 113 Bibile Buttala © © [email protected] ,M©©©,CU©2MUL©+?FGW?LE?L? [email protected] 79 Buttala © © [email protected] 67 ,M©©.MRFSUGJ©0M?B©+ML?P?E?J? [email protected] 89 Mahiyangana © © [email protected] 22 Monaragala ,M©© ?BSJJ?©0M?B©.?QQ?P? [email protected] 11 .?QQ?P? ,M©©,SU?P?©#JGW?©0M?B©5CJGK?B? © © [email protected] 59 Welimada © 61 ,M©\"©)SK?P?B?Q?©+?U?RF?©5CJJ?U?W? © [email protected] 142 Wellawaya © ©© [email protected] 4 470 [email protected] [email protected] 218WESTERN PROVINCE [email protected] [email protected] 1Aluthgama ,M©©%?JJC©0M?B© JSRFE?K? © © [email protected] 175 ©© ©Athurugiriya ,M©© MPCJJ?©0M?B© RFSPSEGPGW? 2156081 © [email protected] 17 © 202Attidiya ,M©©+?GL©0M?B© RRGBGW? © © [email protected] 198Avissawella ,M©©7?RGW?LRFMR?©0M?B© TGQQ?UCJJ? © © 114 ,M© ©+?HCQRGA©!GRW©1R?RGML©0M?B© ?K@?J?NGRGW?© ©© ©Bambalapitiya Colombo 04 2501829 © 12 ©Bandaragama ,M© ©)?JSR?P?©0M?B© ?LB?P?E?K? © 16Battaramulla ,M©©+?GL©1RPCCR© ?RR?P?KSJJ? © ©Boralesgamuwa ,M©©)CQ@CU?©0M?B© MP?JCQE?KSU? © ,M©©+?P?B?L?©0M?B© MPCJJ?© © © ©Borella Colombo 08 2687222 © ©Borella Super ,M ©©\"SBJCW©1CL?L?W?IC©+?U?RF?©!MJMK@M© © ©©© © ©©© ©City ,M©©\" 0 5GHCU?PBCL?©+?U?RF?© © ©Colombo Super Colombo 10 ©©Dehiwala ,M©©\"F?PK?N?J?©+?U?RF?©!MJMK@M© 2434431 ©DelgodaDivulapitiya ,M©©%?JJC©0M?B©\"CFGU?J? © © ©© ,M©©,CU©)?LBW©0M?B©\"CJEMB? 2738422 ,M©©)SPSLCE?J?©0M?B©\"GTSJ?NGRGW? © ©Embuldeniya ,M©©-JB©)MRR?U?©0M?B©#K@SJBCLGW?©,SECEMB? ©Fort ,M©©!F?RF?K©1RPCCR©!MJMK@M© ©© 2327379, 2436889Gampaha ,M©©+?LE?J?©0M?B©%?KN?F? ©© 2222396
158 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceBranch NetworkBranch name Address 2CJCNFMLC©,M©© $?V©,M© E-mail Branch CodeWESTERN PROVINCE CONTD.Gampaha Super ,M©©!MJMK@M©0M?B©%?KN?F? ©© © [email protected] 212 © [email protected] 78Ganemulla ,M©#©)?B?U?RF?©0M?B©%?LCKSJJ? © © [email protected] ,M©©&GEF©*CTCJ©0M?B©%?LEMB?UGJ?©,SECEMB? © © [email protected] 135%MRF?RSU?©,CU©2MUL ,M©©)MRGI?U?RR?©0M?B©%MRF?RSU?©,CU©2MUL © © [email protected] 173Grandpass ,M©©(CRF?U?L?©0M?B©!MJMK@M© © © [email protected] 127%PCEMPWQ©0M?B ,M©©5GHCP?K?©+?U?RF?©!MJMK@M© © © [email protected] [email protected] 70Harbour View ,M©©1PGK?RF©0?K?L?RF?L©+?U?RF?©!MJMK@M© © © [email protected] 58 137Hanwella ,M© ©.?F?J?©&?LUCJJ?©&?LUCJJ? © © [email protected] 29Corporate Branch © [email protected] ,M©©1GP©(?KCQ©.CGPGQ©+U©!MJMK@M© ©© [email protected] 96Hendala 2358358 © [email protected] 69Homagama © [email protected] 57Horana ,M©©&CLB?J?©0M?B©&CLB?J?©5?RR?J? ©© © [email protected] 140'LEGPGW? 2931021 © [email protected] 98Ja-ela © [email protected] 60Kadawatha ,M©©QR©*?LC©1R?RGML©0M?B©&MK?E?K? © © [email protected] 50Kalutara © [email protected] 76Kandana ,M©©1PG©1MK?L?LB?©+?U?RF?©&MP?L? © © 162Kaduwela © [email protected] 210Karagampitiya ,M ©\"©.?L?BSP?©0M?B©'LEGPGW? © © [email protected] 151Keselwatta ,M©©0C?JRW©.J?X?©,CEMK@M©0M?B©(? CJ? © © [email protected] [email protected] 5Kiribathgoda ,M©©0?E?K?©0M?B©)?B?U?RF? © © [email protected] 200Kiribathgoda Super © [email protected] ,M©©+?GL©1RPCCR©)?JSR?P?©1MSRF©)?JSR?P? © © [email protected] 83Kirulapone © 117Kochchikade ,M©©!MJMK@M©0M?B©)?LB?L? © © [email protected] 165Kohuwala © ,M©©©© TGQQ?UCJJ?©0M?B©)?BSUCJ? © [email protected] 94Kollupitiya © [email protected] ,M© ©&GJJ©1RPCCR©\"CFGUCJ? ©© 134Kotahena © © [email protected] © 37 ,M© ©%?JJC©0M?B©)CQCJU?RR?©.?L?BSP? ©© [email protected] 52.?LLGNGRGW? 2299566 © [email protected] 87 ,M©©)?LBW©0M?B©\"?JSE?K?©)CJ?LGW? ©© 2910514 [email protected] 13 [email protected] ,M©©)?LBW©0M?B©)GPG@?RFEMB? © [email protected] 92 [email protected] ,M©©%?KN?F?©0M?B©)GPGLBGUCJ? © [email protected] 42 [email protected] 207 ,M©©©©&GEF©*CTCJ©0M?B©)GPSJ?NMLC © [email protected] [email protected] 39 ,M©©!FGJ?U©0M?B©)MAFAFGI?BC © [email protected] 191 [email protected] 144 ,M©©1©\"C©1©(?W?QGLEFC©+?U?RF?©)MFSU?J? © [email protected] 183 [email protected] 176 %PMSLB©$JMMP©.J?RGLSK©0CQGBCLAGCQ© SGJBGLE©,M©© [email protected] 106 [email protected] ?E?R?JC©0M?B© © 65 86 Colombo 03 155 31 ,M©©%CMPEC©0©\"C©1GJT?©+U©!MJMK@M© © 199 193 ,M©©©&GEF©*CTCJ©0M?B©)MRR?U? ©©© © ,M©©&GEF©*CTCJ©0M?B©.?LLGNGRGW? ©©© ©©© ©Maharagama ,M©©&GEF©*CTCJ©0M?B©+?F?P?E?K? © ©Maharagama Super ,M ©©&GEF©*CTCJ©0B©+?F?P?E?K? ©©© © ©©Main Street ,M©©+?GL©1RPCCR©!MJMK@M© © ©Makola ,M© ©+?IMJ?©1MSRF©+?IMJ? © ©Malabe ,M©© RFSPSEGPGW?©0M?B©+?J?@C © ©Maligawatte ,M©©+?JGE?U?RRC©0M?B©!MJMK@M© © © ,M©©)SJ?P?RFLC©+?U?RF?©+?P?B?L?©0M?B© ©Maradana Colombo 10 © ,M© ©+GPGE?K?©0M?B©+?P?LB?E?F?KSJ? ©Marandagahamula ,M©©1?JE?Q©(SLARGML©+?RRCEMB? ©Mattegoda ,M©© © JSRFE?K?©0M?B©+?RSE?K? © ©Matugama ,M©©,CEMK@M©0M?B©+GLSU?LEMB? © ©Minuwangoda ,M©©%GPGSJJ?©0M?B©+GPGE?K? © ©Mirigama ,M©©1PG©.PCK?P?RFLC©+?U?RF?+MP?RSKSJJ? © ©Moratumulla ,M©©%?JJC©0M?B©0?U?R?U?RR?©+MP?RSU? © ©Moratuwa ,M©©%?JJC©0M?B©+MSLR©*?TGLG? © ©+MSLR©*?TGLG? ,M©© JSRFK?U?RF?©0M?B©!MJMK@M© © ©Mutwal © © ©
159 Branch name Address 2CJCNFMLC©,M©© $?V©,M© E-mail Branch Code,?P?FCLNGR? ,M ©©#JTGRGE?J?©+?U?RF?©!MJMK@M© © ©©©© © [email protected],?U?J? ,M©©,?U?J?©0M?B©,SECEMB? © [email protected] 40,?U?K©+?U?RF? ,M©©,?U?K©+?U?RF?©!MJMK@M© © © [email protected],CEMK@M ,M©©+?GL©1RPCCR©,CEMK@M © © [email protected] 82,CEMK@M© ,M©\"©2CJU?RRC©(SLARGML©!MJMK@M©0M?B© © © [email protected] 9,GRR?K@SU? ,CEMK@M,SECEMB? 1PG©0?KW?© SGJBGLE©)?LBW©0M?B©,GRR?K@SU? © © 24Old Moor Street ,M©© ©1R?LJCW©2FGJJCICP?RLC©+U©,SECEMB? 88Orugodawatte.?BSII? ,M©©-JB©+MMP©1RPCCR©!MJMK@M© © © [email protected] 71.?L?BSP?©1SNCP 760 B, Dr. Danister de Silva Mawatha, Colombo 9.?L?BSP?© ©5CI?B? ,M©©&MP?L?©0M?B©.?BSII? ©© ©© © [email protected] 3 ,M©©%?JJC©0M?B©.?L?BSP? 2816288 ©.CJ?U?RRC ,M© ©©!©&MP?L?©0M?B©5CI?B?©.?L?BSP? 011-2682698 [email protected] 27 ©©.CJGW?EMB? ,M©©.?LLGNGRGW?©0M?B©.CJ?U?RR?© ?RR?P?KSJJ? 2424075 [email protected] 214 [email protected] 192.CRR?F ,M©©,CEMK@M©0M?B©.CJGW?EMB? © [email protected]?LB?J? 26.GR?IMRRC ,M©©.CMNJCQ©.?PI© MBFGP?H?©+U©!MJMK@M© © © [email protected]?RGLSK©.JSQ ,M©©+MP?RSU?©0M?B©.GJGW?LB?J? 47 ,M©©)MRRC©0M?B©.GR?IMRRC © ©.PGLAC©1RPCCR ,M©©!?K@PGBEC©.J?AC©!MJMK@M© ©© © [email protected] 630?E?K? ,M ©©.PGLAC©1RPCCR©!MJMK@M© 2244534 © © [email protected] 1360?H?EGPGW? ,M©©©3\" ©.PCKGQCQ©)?B?U?RF?©0M?B© ©© ©0?RK?J?L? 0?E?K? 2786119 [email protected] 2 ,M ©©©©©)MRRC©0M?B©0?H?EGPGW?Seeduwa ,M©©%?JJC©0M?B©0?RK?J?L? ©© [email protected] 19 2938797 [email protected] 91Talahena ©,CEMK@M©0M?B©1CCBSU? [email protected] 131Thalawathugoda ©©©Thimbirigasyaya ,M©©2?J?LE?K?©,MPRF©2?J?LE?K? 2394596Veyangoda ,M©©.?LLGNGRGW?©0M?B©2F?J?U?RFSEMB?Wadduwa ,M©©©&?TCJMAI©0M?B©!MJMK@M© © © [email protected] 217 ,M©©,CEMK@M©0M?B©4CW?LEMB? ©Wattala ,M©©©%?JJC©0M?B©5?BBSU? © ©WellampitiyaWellawatta Super ,M©©©,CEMK@M©0M?B©5?RR?J? © © ,M©©)MJMLL?U?©0M?B©5CJJ?KNGRGW?World Trade Centre ,M© ©%?JJC©0M?B©!MJMK@M© ©©©© 3LGR©*# ©*CTCJ©©#?QR© JMAI©5MPJB©2P?BC© ©©©Yakkala Centre, Echelon Square, Colombo 01 © ,M©©)?LBW©0M?B©7?II?J? © © [email protected] 73 [email protected] 122 ©©© © [email protected] © © [email protected] 18 213 © © [email protected] 211 © © [email protected] 178 ©© © [email protected] © © [email protected] 34 © [email protected] 77 © © 75 © [email protected] © [email protected] 8 © © [email protected] 45 © 36 © [email protected] © 219 © © [email protected] 68 ©© 2285132 ©© 2941526/7 © © ©©© ©©© © ©© 2234230
160 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceNostro Accounts !MSLRPW©©,?KC©MD©RFC© 15'$2©!MBC CCY !MSLRPW©©,?KC©MD©RFC© 15'$2©!MBC CCY Bank & Address , 2 3 AUD Bank & Address ACU- \"-** 0Australia 1! * \"\"6 ACU- India ACU- BOFMCAT2 \"-** 0 #30-, 2'-, *© 3120 *' © !'2'!,16 CAD ,)©-$©!#7*-,©© !#7',+ ACU- ,)© !,7 .MML?K?JJCC©&GEF©0M?B© \"-** 0 DABADKKK !FCLL?G©©'LBG?800 Bourke Street, DKK #30Docklands, Melbourne, DEUTDEFF ,)©-$©!#7*-,©© !#7',+ #304'!©© SQRP?JG? COBADEFF #30 .MML?K?JJCC©&GEF©0M?B© HYVEDEMM #30 !FCLL?G©©'LBG? (.7Bangladesh #30 1! *&)&& 12 ,\" 0\"©!& 02#0#\"© 1! *', (.712 ,\" 0\"©!& 02#0#\"© HKD ,)© (.7 ,)© Mumbai Main -23/25, ,8\".-© MV©©\"F?I?© +?F?RK?©%?LBFG©0M?B©Bangladesh $MPR©+SK@?G©©'LBG? ,-)Canada Italy ,)©-$©+-,20# * 3,'!0#\"'2©1. © 3,!0'2++©*?GPB©\"P©3LGR©© .G?XX?©!MPBSQGM©Toronto, M4G 4K1 Canada, ©+GJ?L©+'©'R?JW©China ,! .-.-* 0#©1-!© ..'2 !--.©!'2'© ,)©!&', ©!-©*2\" .G?XX?©,ME?P?©©Citigroup Tower, ©4CPML?©40©'R?JW,M©©&S?©7S?L©1FG©/G?M©0M?B©.SBMLE© JapanShanghai 200120,China ,)©-$©2-)7-© -2)(.(2Denmark +'213 '1&'©3$(©*2\"© 2-7-1 Marunouchi,\" ,1)#© ,)© 1 Chiyoda-ku,Holmens Kanal 2-12, Tokyo 100-8388,1092 Copenhagen, Tokyo, JapanHovedstaden, Denmark 12 ,\" 0\"©!& 02#0#\"© 1! *(.(2Germany ,)\"#321!&#© ,)© % .-© MV©©1?LLM©.?PI©60262 Frankfurt am Main, Tokyo 100-6155 JapanGermany 13+'2-+-©©+'213'© 1+ !(.(2!-++#08© ,)© %© ,)',%©!-0.-0 2'-,©60261 Frankfurt am Main,Germany 1-1-2 Marunouchi, Chiyoda-ku,3,'!0#\"'2© ,)© %© Tokyo 100-0005,&7.-4#0#',1 ,) Tokyo, Japan.MQRD?AF©©80311 Munich, New ZealandGermany ,)©-$©,#5©8# * ,\" ),8,8Hongkong ,8©&?P@MSP©/S?WQ© * .©©5?RCPJMM©/S?W©12 ,\" 0\"©!& 02#0#\"© 5CJJGLERML©,CU©8C?J?LB ,)©&-,%©)-,%©©*2\"© Norway.-© MV©©$©Standard Chartered Bank \", © ,)© 1 \", ,-))Building, 4-4A Des Voeux Dronning Eufemias gate0M?B©!CLRP?J©&MLE©)MLE© 30, 0191 Oslo, Oslo,Hong Kong ,MPU?W
161!MSLRPW©©,?KC©MD©RFC© 15'$2©!MBC CCY !MSLRPW©©,?KC©MD©RFC© 15'$2©!MBC CCY Bank & Address Bank & Address )2031 USDPakistan United States of America !'2'31 USD +0+\"31 USD12 ,\" 0\"©!& 02#0#\"© 1! *.))6 ACU- \"#321!&#© ,)©20312© CHASUS33 USD ,)©. )'12 ,©*2\" \"-** 0 !-+. ,7© +#0'! 1 60 Wall St, MSHQUS33 USD.-© MV©© +?GJ©1RMN©,7!© © ., .31,,7! USD' '©!FSLBPGE?P©0M?B© ,CU©7MPI©,7©©Karachi 74000, Sindh USA.?IGQR?L !'2'© ,)©, South Africa ©5?JJ©1R©,CU©7MPI© 10005 USA$'0120 ,\"© ,)©*2\"© $'0,8 (( 8 0 JCV?LBP?©.J?X?© &1 !© ,)©31 ©, 3rd St, Alexandra, ©$GNJF©© TCLSC©,CU©Johannesburg South Africa 7MPI©,7©©31 Singapore (.©+-0% ,©!& 1#© ,)© , 3,'2#\"©-4#01# 1© ,)© UOVBSGSG SGD ©.?PI© TCLSC©*2\" ,CU©7MPI©,7©©3- ©.J?X?©©0?ljCQ© USA.J?AC©1GLE?NMPC©© + 1&0#/© ,)©.1!-4#01# ©!&',#1#© OCBCSGSG SGD 50, Broadway, Suite 1500, ,)',%©!-0.©*2\" ,CU©7MPI©,7©©©31 65 Chulia Street, 5#**1©$ 0%-© ,)©, # 26-00, OCBC Centre, ©.?PI© TCLSC©Singapore 049513, ,CU©7MSI©©31 SingaporeSweden1) ,\"', 4'1) © ESSESESS SEK#,1)'*\" © ,)#,© ©©Kungsträdgårdsgatan 8, G4-610640 Stockholm,SwedenSwitzerland83!�©) ,2-, *© ,)©© ZKBKCHZZ80A CHFBahnhofstrasse 9,8010 Zürich,SwitzerlandUnited Arab Emirates+ 1&0#/© ,)©.1!© -+* # \" AED.-© MV©©Omer Bin Al KhattabStreet, Deira, Dubai City,UAE#+'0 2#1©, \"©©.(1! # '* # \" AED.-© MV©©Dubai City, UAEUnited Kingdom ,)©-$©!#7*-,©3)©*2\" !#7% * %.1 Devonshire Square,*MLBML©#!+©5\"©UK 0!* 71© ,)©.*!© 0!% %.©!FSPAFGJJ©.J?AC©*MLBML©#©&.©UK
162 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorrespondent Banks and Exchange CompaniesG4 - 6 Country 15'$2©!MBC Country 15'$2©!MBC1. Australia 8. Canada SQRP?JG?©?LB©,CU©8C?J?LB© ?LIGLE© ,8 31 The Bank of Montreal BOFMCAT2%PMSN©*RB HSBC Bank Canada HKBCCATTCitigroup pty ltd Sydney !'2' 36 0MW?J© ?LI©MD©!?L?B? 0-7!! 2(.©+MPE?L©!F?QC© ?LI©, © !& 1 36 ,-1!! 22,?RGML?J© SQRP?JG?© ?LI©*RB , 2 3 ?LI©MD©,MT?©1AMRG?2. Austria 9. Chile #!&!*0+0?GDžCGQCLJ?LBCQ@?LI 044% 2 Banco del Estado de Chile !'2'!*01Unicredit Bank Austria AG BKAUATWW Banco De Chile!GRG@?LI©#SPMNC©.*! !'2''#6 10. China '! )!, (3. Bahrain 'LBSQRPG?J©?LB©!MKKCPAG?J©Mashreq Bank -+* & + Bank of China )!&!, (4. Bangladesh Bank of China !'2'!,16\"F?I?© ?LI©*RB \"& * \"\"& !GRG@?LI©!FGL?©!M©*RB !- !,16Standard Chartered Bank 1! * \"\"6 Commerzbank AG \"#32!,1&5. Belgium \"CSRQAFC© ?LI©!FGL?©!M©*RB© &1 !!,1&Commerzbank AG !- # 6 &1 !© ?LI©!FGL?©!M©*RB !& 1!,1&',%© CJEGSK©,41 03 # (.©+MPE?L©!F?QC© ?LI©) !© ?LI©,4 !FGL?©!M©*RB 1! *!,166. Brazil )0#\" # Standard Chartered BankDeutsche Bank SA !FGL?©*RB© ., .!,1&7. Bulgaria \"#32 01. 5CJJQ©$?PEM© ?LI©, UnicreditBulbank AD 11. Cyprus 1-%#!7, 3,!0 %1$ 1MAGCRC©%CLCP?JC©!WNPSQ©*RB
163 Country 15'$2©!MBC Country 15'$2©!MBC !GRG@?LI©, © !'2'', 612. Czech Republic Deutsche Bank AG \"#32', The Hongkong& Shanghai Banking &1 !',Commerzbank AG !- !8.6 !MPNMP?RGML©*RB '!'!'© ?LI©*RB© '!'!', !213LGAPCBGR© ?LI©!XCAF©0CNS@JGA© 1 !6!8.. Mashreq Bank +1&/', Standard Chartered Bank 1! *',13. Denmark 1R?RC© ?LI©MD©'LBG?© 1 ',', AxisbankTradeFinance Ctr 6'1', 2$!Danske Bank A/S DABADKKK )?PSP©4WQW?© ?LI©*RB© )4 *', .SLH?@©,?RGML?J© ?LI© .3, ',\", © ?LI© 1 \", \"))6 'LBG?L© ?LI© '\"' ', 2?KGJL?B©+CPA?LRGJC© ?LI©*2\" 2+ *',,MPBC?© ?LI©\"CLK?PI© 1 ,\"# \"))) &\"$!© ?LI©*RB &\"$!', 22. Indonesia14. Egypt !GRG@?LI©, © !'2''\"(6 Deutsche Bank AG \"#32'\"( P?@©'LRCPL?RGML?J© ?LI 0' #%!6 The Hongkong and Shanghai &1 !'\"( BankingMashreq Bank MSHQEGCA !MPNMP?RGML©*RB© +0''\"( 1! *'\"(615. Finland ?LI©+?LBGPG©.CPQCPM©.2© Standard Chartered Bank ,','\"( ,MPBC?© ?LI©$GLJ?LB©.*! ,\"# $'&& ?LI©,CECP?©'LBMLCQG?©.2© -$''#\"Danske Bank \" $'&6 .CPQCPM© !'2''#6 23. Ireland\", © ?LI© 1 \", $'&6 *3+''*'2 ?LI©MD©'PCJ?LB©©©©©©©©©©©©©©©©©©©©Skandinevinska EnskildaBanken #11#$'&6 !GRG@?LI©#SPMNC©.*!©©©©©©©©©©©© ,*''200 24. Israel 3 ''20016. France !- '2++ ?LI©*CSKG©JC©©'QP?CJ© + 3,!0'2++,.©.?PG@?Q©1 ,. $0.. ©'R?JW ..'2Union de BanquesArabes et 3 $$0.. ?LA?,?XGML?JC©BCJ©*?TMPM1N $P?LA?GQCQ©3 $ ?LA?©3 #©1. ,8 (.(6 Commerzbank AGDeutsche Bank AG \"#32$0.. UnicreditSpA !'2'(.(2 ?LA?.MNMJ?PC1MA©!MMN !- (.(6Commerze Bank AG !- $0.6 26. Japan \"#32(.(2 SQRP?JG?©?LB©,CU©8C?J?LB© ?LIGLE© &1 !(.(2!PCBGR©*WMLL?GQ !0*7$0.. %PMSN©*RB© !GRG@?LI©(?N?L©*RB© 1! *(.(217. Germany Commerzbank AG, Tokyo +&! (.(2 Deutsche Bank AG 1+ !(.(23LGAPCBGR© ?LI© %©&WNMTCPCGLQ@?LI HYVEDEMM The Hongkong and Shanghai Banking -2)(.(2Commerzbank AG COBADEFF !MPNMP?RGML©*RB© Standard Chartered BankDeutsche Bank AG DEUTDEMM +GXSFM© ?LI©*RB© Sumitomo Mitsui Banking\", © ?LI© 1 \", \"#&6 Corporation 2FC© ?LI©MD©2MIWM©©18. Greece +GRQS@GQFG©3$(©*RB©,?RGML?J© ?LI©MD©%PCCAC©1 #2&,%0 19. Hong Kong,.©.?PG@?Q ,. &)&&!GRG@?LI©, !'2'&)&6Commerzbank AG !- &)&6Deutsche Bank AG DEUTHKHHHongkong& Shanghai Banking HSBCHKHH!MPNMP?RGML©*RB(.©+MPE?L©!F?QC© ?LI©, CHASHKHH1R?LB?PB©!F?PRCPCB© ?LI©&MLE© 1! *&)&&)MLE©*RB3 $©&MLE©)MLE©*RB 3 $&)&65CJJQ©$?PEM© ?LI©, ., .&)&&Shinhan Bank 1& )&)&6?LI©MD© KCPGA?©,© -$ &)&6Woori Bank Hong Kong HVBKHKHH20. Hungary!' © ?LI©*RB !' &&3&!MKKCPX@?LI© SB?QNCQR©02 !- &3&621. IndiaBank of Ceylon !#7',+
164 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorrespondent Banks and Exchange Companies Country 15'$2©!MBC Country 15'$2©!MBC(.©+MPE?L©!F?QC© ?LI©, © !& 1(.(2 The Hongkong& Shanghai Banking &1 !,8 5CJJQ©$?PEM© ?LI©, © ., .(.(6 !MPNMP?RGML©*RBOkazaki Shinkin Bank -)1 (.(8 35. Norway \", ,-))Sumitomo Mitsui Banking Corp, Osaka 1+ !(.(2-1 \", ©© ?LI© 1 ,\"# ,-))0CQML?© ?LI©*RB© \"'5 (.(2 ,MPBC?© ?LI©,MPEC©© 1 #11#,-)61?GR?K?©0CQML?© ?LI© 1 ' (.(2 Scandinevinska Enskilda BankenYokohama Shinkin Bank 7-)-(.(+ 36. Oman +#-+0627. Korea HSBC Bank Oman S.A.O.G 1! *-+06Deutsche Bank AG \"#32)01# Standard Chartered BankKookmin Bank !8, )01# 37. Pakistan 1! *.))6'LBSQRPG?J© ?LI©MD©)MPC? ' )-)01# 1! ©.?IGQR?L©*RBKorea Exchange Bank )-#6)01# 38. Philippines !'2'.&+6Shinhan Bank 1& ))01# !GRG@?LI©, \"#32.&++UbafUnion De Banques Arabes 3 $)016 Deutsche Bank AG &1 !.&++5CJJQ©$?PEM© ?LI©, ., .)016 The Hongkong & Shanghai BankingWoori Bank &4 ))01# !MPNMP?RGML©*RB !'2'.*.628. Kuwait 39. Poland ,\"# .*.!GRG@?LI©, !'2')5)5 Bank Handlowy w Warszawie SA,?RGML?J© ?LI©MD©)SU?GR , -))5)5 .IM© ?LI©.MJQIG©1 ,. .2.*29. Malaysia 40. PortugalCitibank Berhad !'2'+7)* +#/ /6\"CSRQAFC© ?LI©+?J?WQG?© FB \"#32+7)* ,.©.?PG@?Q©1SASPQ?J©#+©.MPRSE?J MSHQQAQAHSBC Bank Malaysia Berhad & + +7)* 41. QatarStandard Chartered Bank Malaysia 1! *+7)6 &1 !© ?LI©+GBBJC©#?QR©*RB 0,! 0- 3Bhd Mashreq BankMalayan Banking Berhad + #+7)* 42. Romania *1 0'30. Mauritius ,! )1 (#+?SPGRGSQ©!MKKCPAG?J© ?LI©*RB +! *+3+3 ?LA?©!MKKCPAG?J©0MK?L?©1 1 1 0' 0!+3+3 43. Saudi Arabia 0(&'1 0' ?PAJ?WQ© ?LI©+?SPGRGSQ©*RB +16+6++ Saudi Hollandi Bank ',+ 1 0'Banco Santander Mexicano 2FC©,?RGML?J©!MKKCPAG?J© ?LI31. Maldives BCEYMVMV The Saudi British Bank -2)1%16Bank of Ceylon + * +4+4 J©0?©HFG© ?LI Alinma Bank !'2'1%1% ?LI©MD©+?JBGTCQ©.*! 1! *,.) 44. Singapore !- 1%1632. Nepal The Bank of Tokyo- Mitsubishi DBSSSGSG1R?LB?PB©!F?PRCPCB© ?LI©,CN?J©*RB !- ,*6 3$(©*RB DEUTSGSG33. Netherlands \"#32,* !GRG@?LI©, © HSBCSGSGCommerzbank AG ',% ,* Commerzbank AGDeutsche Bank AG \" 1© ?LI©*RB© CHASSGSG',%© ?LI©,4 ,8 ,8 Deutsche Bank AG MHCBSGSG34. New Zealand ),8,8 The Hongkong & Shanghai Banking ,8© ?LI©,CU©8C?J?LB©*RB !MPNMP?RGML©*RB© !'2',86 (.©+MPE?L©!F?QC© ?LI©, © ?LI©MD©,CU©8C?J?LB +GXSFM© ?LI©*RB!GRG@?LI©,
165 Country 15'$2©!MBC Country 15'$2©!MBCOversea-Chinese Banking OCBCSGSG Siam Commercial Bank 1'!-2& )!MPNMP?RGML©*RB 52. TurkeyStandard Chartered Bank 1! *1%1% HSBC Bank AS &1 !20'6Union de BanquesArabes et 3 $1%16 Turk EkonomiBankasi AS 2# 320'1$P?LA?GQCQ©3 $ ',%© ,)© 1 ',% 20'13LGRCB©©-TCPQC?Q© ?LI©*RB UOVBSGSG Asya Katilim Bankasi 17 20'145. South Africa 53. United Arab Emirates 1 © ?LI©*RB ABSAZAJJ !GRG@?LI©, !'2' # \"$GPQR0?LB© ?LI©*RB $'0,8 (( &1 !© ?LI©+GBBJC©#?QR©*RB BBMEAEAD,CB© ?LI©*RB ,#\"18 (( +?QFPCO ?LI©.1!46. South Korea Standard Chartered Bank -+* # \"!GRG@?LI©)MPC?©'LA© !'2')016 Habib Bank AG Zurich 1! * # \"Deutsche Bank AG \"#32)01# #KGP?RCQ©, \"©@?LI©.(1! HBZUAEADThe Hongkong & Shanghai Banking &1 !)01# 54. United Kingdom # '* # \"!MPNMP?RGML©*RB©(.©+MPE?L©!F?QC© ?LI©, © !& 1)016 ?LI©MD©!CWJML3)©*RB !#7% *1R?LB?PB©!F?PRCPCB© ?LI©)MPC?©*RB© 1! *)01# ?PAJ?WQ© ?LI©.*! 0!% Union de BanquesArabes et 3 $)016 !GRG@?LI©, © !'2'% *$P?LA?GQCQ©3 $© The Hongkong& Shanghai Banking +'\"*% 5CJJQ©$?PEM© ?LI©, © ., .)016 !MPNMP?RGML©*RB47. Spain (.©+MPE?L©!F?QC© ?LI©, © !& 1% *Banco Bilbao VizcayaArgentaria SA BBVAESMM Standard Chartered Bank 1! *% *Banco Santander SA BSCHESMM 5CJJQ©$?PEM© ?LI©, ., .% *Commerzbank AG !- #1+6 55. United States of America48. Sweden !GRG@?LI©, !'2'31Danske Bank A/S \" 1#16 Deutsche Bank AG DEUTUS33Skandinaviska Enskilda Banken ESSESESG Deutsche Bank Trust CompanySvenska Handelsbanken & ,\"1#11 Americas )203149. Switzerland &1 !© ?LI©31 ©, Credit Suisse AG !0#1!&88 (.©+MPE?L©!F?QC© ?LI©, +0+\"3150. Taiwan +?QFPCO ?LI©.1! CHASUS33!GRG@?LI©2?GU?L©*RB !'2'2526 Standard Chartered Bank MSHQUS33Deutsche Bank AG \"#32252. 5CJJQ©$?PEM© ?LI©, 1! *31The Hongkong & Shanghai Banking &1 !252. Bank of America ., .31,,7!!MPNMP?RGML©*RB ?LI©MD©,CU©7MPI©+CJJML BOFAUS3M(.©+MPE?L©!F?QC© ?LI©, !& 12526 5CJJQ©$?PEM© ?LI©, '04231,+GXSFM© ?LI©*RB +&! 252. 5CJJQ©$?PEM© ?LI©, ., .311R?LB?PB©!F?PRCPCB© ?LI©2?GU?L© 1! *252. 56. Vietnam ., .31.&**RB !GRG©© ?LI©,© 5CJJQ©$?PEM© ?LI©, ., .252. !'2'4,4651. Thailand!GRG© ?LI©, © !'2'2& 6Deutsche Bank AG DEUTTHBKThe Hongkong & Shanghai Banking HSBCTHBK!MPNMP?RGML©*RB)?QGIMPL@?LI©.S@JGA©!MKN?LW©*RB ) 1'2& )1R?LB?PB©!F?PRCPCB© ?LI©2F?G©.!* 1! *2& 6'LBG?L©-TCPQC?Q© ?LI©*RB BHOBTHBK#VNMPR©'KNMPR©@?LI©MD©2F?GJ?LB #62&2& ) AYUDTHBK ?LI©MD© WSBFW?©.S@JGA©AM©JRB
166 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceCorrespondent Banks and Exchange CompaniesCountry Name of Exchange Company Country Name of Exchange Company Colombo Money Transfer ©'QP?CJ© ,CPM©2P?LQDCP©*2\"© HCH HoldingsAustralia )?NPSI?©.27©*2\"© ©'R?JW© ,#!©+MLCW©2P?LQDCP©1 ©1N?GL©©Kingdom *?LI?©!SPPCLAW©!MLTCPRCP© Jordan ,?RGML?J©#VAF?LEC©!MKN?LW©of *ME?©'LRCPL?RGML?J©.27©*2\"© Kuwait Al Falah ExchangeBahrain 0CKGRR?LAC©.JSQ© Malaysia 07©©1NCCB©0CKGR©Canada 1PG©!?QF©0CKGRR?LAC© ©,CU© Al Awneh ExchangeCyprus 2©1©1©5MPJB©5GBC©+MLCW©2P?LQDCP©.27©*2\"© Zealand Al Mulla Exchange 2P?LQ©!?QF©'LRCPL?RGML?J© OmanUAE ,?RGML?J©$GL?LAC©©#VAF?LEC©©!M© ?FP?GL©$GL?LAC©!MKN?LW©!M 5**©#8© Turbo Cash Qatar 0CKGR© 2P?TCJCV© ?FP?GL©5©*©*© *SJS©'LRCPL?RGML?J©#VAF?LEC© ©1©!© ?FP?GL© Saudi ?FP?GL©#VAF?LEC©!MKN?LW©5©*©*© H S Communication Arabia Dollarco Exchange %©1©!?QF©*GLC© Joalukkas -Kuwait Sigue Money Transfer '+#©+©1\",© &\"© 07©1NCCB©0CKGR© .P?@FS©%PMSN©',!© Wall Street Exchange Habib Exchange )?NPSI?©,CU©8C?J?LB© UAE Exchange Oman & UAE Exchange Centre *CCJ?©+CEF©#VAF?LEC© Travelex Oman #KGP?RCQ©'LBG?©'LRCPL?RGML?J©#VAF?LEC© .SPQFMRR?K©)?LHG©#VAF?LEC© J©0MQR?K?LG©'LRCPL?RGML?J©#VAF?LEC© Al Jadeed Exchange *© F?JG?©#VAF?LEC© Doha Bank *© LQ?PG©#VAF?LEC© Al Fardan Exchange *SJS©#VAF?LEC© City Exchange Sharaf Exchange 'QJ?KGA©#VAF?LEC© .P?@FS©%PMSN©',!© Al Zaman Exchange Delma Exchange *?PG©#VAF?LEC© 2P?LQ©$?QR©0CKGRR?LAC©**!© Gulf Exchange Al Hamed Exchange J©+?L?©#VAF?LEC©!M©5©*©*© Mawrid Exchange Al Dar For Exchange Works Alfalah Exchange J©1??B©#VAF?LEC©!M©5©*©*© +SJRGLCR©2PSQR©#VAF?LEC©*©*©!© Habib Qatar P?@©*GLI© Doha Exchange Joalukkas-UAE Travelex Qatar .PMEMRG©#VAF?LEC©!MKN?LW© Al Mirqab %!!©#VAF?LEC©3)©*GKGRCB© Al Jazeera Exchange Qatar 'LQR?LR©!?QF© J©0?HG©#©N?W© Tahweel KSA Alinma Bank Enjaz Bank Al Bilad
167 Country Name of Exchange CompanySpain Money Exchange S AUnited ,#!©+MLCW©2P?LQDCP©1 ©1N?GL©©Kingdom H S Communication 2FGJGL?©1PG©*?LI?©SAMPATH BANK PLC ALSO ACTS ASAN AGENT OF FOLLOWING GLOBALCOMPANIES.+MLCWEP?K©'LRCPL?RGML?J©Sigue Money Transfer6NPCQQ©+MLCW©#X 0CKGR©'LQR?LR©!?QF©%JM@?J©+MLCW©2P?LQDCP©0G?©$GL?LAG?J©1CPTGACQ©.P?@FS©%PMSN©',!©.J?AGB©#VNPCQQ©
168 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInvestor RelationsVALUE CREATION FOR SHAREHOLDERS 2014 2013 Change % 184.10 169.37 8.70 ,CR©?QQCRQ©NCP©QF?PC©0Q 31.35 21.67 %PMSN©C?PLGLEQ©NCP©QF?PC© © ?QGA©0Q 11.00 8.00 44.67 \"GTGBCLB©NCP©QF?PC©0Q 236.30 171.90 37.50 Market price per share as at 31st December 37.46SAMPATH BANK’S MARKET DIVIDEND PER SHARE EARNINGS AND HIGHESTCAPITALISATION RANK DPS MARKET PRICE PER SHARE20 Rs Rs Rs 14 40 600 16 12 1215 16 17 10 89 11 30 450 23.0 13 6 8 20 307 32.6 30010 21.7 31.4 216 242 2525 4 10 150 20 0 00 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 Earnings per Highest Market Price Share - Group per Share?LIQ©+?PICR©!?NGR?JGQ?RGML©GL©!MKN?PGQML©RM©!1#© © Q©?R©QR©\"CACK@CP© © © © ©1?KN?RF© ?LI©K?PICR©A?NGR?JGQ?RGML©0Q©+L 2014 2013 2012 2011 2010'LAPC?QC©©BCAPC?QC©̎©GL©K?PICR©A?NGR?JGQ?RGML 39,677 28,843 32,628 30,587 41,548!1#©K?PICR©A?NGR?JGQ?RGML©0Q©+L 38 ©© 7 195As a % of CSE market capitalisationMarket capitalisation rank 3,104,860 2,459,900 2,167,581 2,213,873 2,210,452 1.28 1.17 1.50 1.38 1.88 17 16 13 16 15SHAREHOLDERS’ FUND COMPOSITION OF SHARE OWNERSHIP - SAMPATH BANK’S ROE & 2014 (NO OF SHAREHOLDERS) MARKET INTEREST RATES Rs Mn % % 3035,000 55 4930,00025,000 2520,000 22.315,00010,000 20 16.2 5,000 0 15 21,344 16.4 25,645 28,418 30,912 8.2 7.5 11.1 12.0 13.1 10.6 9.1 6.7 12.9 10 5 41 0 Shares 500 & Less Shares 5,001-10,000 2011 2012 2013 2014 Shares 501-5,000 More than 10,000 shares Average of 12 Average of 12 ROE 2011 2012 2013 2014 Months AWFDR Months T.B. Rate
169ANALYSIS OF SHAREHOLDERSResident / Non Resident 31st December 2014 31st December 2013 No of No of Shares % No of No of Shares % Shareholders Shareholders 85.020CQGBCLR©QF?PCFMJBCPQ 17,364 138,232,554 82.33 17,595 142,649,505 14.98,ML©PCQGBCLR©QF?PCFMJBCPQ 100.00 324 29,677,699 17.67 305 25,138,100 17,688 167,910,253 100.00 17,900 167,787,605Individuals / Institutions 31st December 2014 31st December 2013 No of No of Shares % No of No of Shares % Shareholders Shareholders 35.40'LBGTGBS?JQ 17,152 59,630,792 35.51 17,331 59,392,666 64.60'LQRGRSRGMLQ 100.00 536 108,279,461 64.49 569 108,394,939 17,688 167,910,253 100.00 17,900 167,787,605Composition of Share Ownership 31st December 2014 31st December 2013 No of % No of Shares % No of % No of Shares % Shareholders Shareholders1F?PCQ©©©*CQQ 8,725 49.33 1,697,166 1.01 8,916 49.81 1,738,236 1.04Shares 501-5,000Shares 5,001-10,000 7,198 40.69 12,253,292 7.30 7,113 39.74 10,986,610 6.55More than 10,000 shares 878 4.96 6,154,091 3.66 864 4.83 6,197,624 3.69 887 5.02 147,805,704 88.03 1,007 5.62 148,865,135 88.72 17,688 100.00 167,910,253 100.00 17,900 100.00 167,787,605 100.00SAMPATH BANK’S MARKET30,587 COMPOSITION OF SHARE SHARE TRADING - SAMPATH BANK PLCCAPITALISATION32,628 OWNERSHIP - 2014 (NO OF SHARES) NO OF SHARES TRADED Rs Mn 28,843 % Mn40,000 39,677 5035,000 17 4830,000 425,000 4020,00015,000 3010,000 29 28 5,000 27 0 20 2011 2012 2013 2014 10 88 0 2011 2012 2013 2014 Shares 500 & Less Shares 5,001-10,000 Shares 501-5,000 More than 10,000 shares
170 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInvestor RelationsSHARE TRADINGMarket,M©MD©RP?LQ?ARGMLQ 2014 2013 2012 2011 2010,M©MD©QF?PCQ©RP?BCB 1,982,709 1,421,303 1,857,384 4,579,352 3,355,126Value of sharesRP?BCB©0Q©+L 16,721,524,209 9,054,193,822 9,691,236,634 24,543,700,782 18,489,195,424 340,917 200,468 213,827 546,255 570,326Bank 2014 2013 2012 2011 2010 18,403 19,212 13,473 15,335 20,154 ,M©MD©RP?LQ?ARGMLQ ,SK@CP©MD©QF?PCQ©RP?BCB 27,712,319 47,891,453 28,871,254 26,951,903 67,672,164 As a % of total shares in issue 16.50 28.54 17.74 17.18 44.20 TCP?EC©B?GJW©RSPLMTCP©0Q©+L 24.34 39.75 22.55 30.23 90.78 4?JSC©MD©QF?PCQ©RP?BCB©0Q©+L 5,866.37 9,620.18 5,457.94 7,225.70 20,427.00Sampath Bank's Share Price Fluctuation+GLGKSK©K?PICR©NPGAC©0Q 2014 2013 2012 2011 2010+?VGKSK©K?PICR©NPGAC©0Q 164.20 161.60 148.50 191.00 201.00.PGAC©?Q©?R©QR©\"CACK@CP© ©AJMQGLE©NPGAC©0Q 252.00 242.00 216.00 307.00 550.00 236.30 171.90 200.50 195.00 271.90 GROSS DIVIDEND SHAREHOLDING OF INDIVIDUALS & INSTITUTIONS Rs Mn 2,000 % 1,500 100 91 93 65 64 1,000 80 500 1,427.0 1,954.1 60 0 2011 2012 2013 2014 1,342.340 1,847.0 20 9 70 35 36 2011 2012 2013 2014 Individuals Institutions
171 SAMPATH BANK’S SHARE PRICE FLUCTUATION SHARE TRADING SAMPATH BANK PLC Rs 350 30,000 25,000 300 20,000 15,000 250 10,000 5,000 200 0 150 Turnover (Rs 000) Volume Traded (No 000) 100 Dec-11 Dec-12 50 Dec-13 Dec-14 0 2011 2012 2013 2014 Minimum Market Price (Rs) Maximum Market Price (Rs) Price as at 31st December Closing Price1 +. 2&© ,)©.*!©˔©-0\"', 07©1& 0#1©Frequency Distribution of Shareholders as at 31st December 2014Share Range Resident Non Resident Total No of Shareholders % No of Shares % No of Shareholders % No of Shares % No of Shareholders % No of Shares %1 - 250 4,409 24.93 335,956 0.2001 61 0.34 5,653 0.0034 4,470 25.27 341,609 0.2035251 - 500 4,210 23.80 1,340,191 0.7982 24.05 1,355,557 0.8074501 - 1,000 2,796 15.81 1,909,249 1.1370 45 0.25 15,366 0.0092 4,255 16.13 1,949,247 1.16081,001 - 2,000 2,114 11.95 3,041,888 1.8116 12.18 3,098,495 1.84532,001 - 5,000 2,147 12.14 7,059,995 4.2046 56 0.32 39,998 0.0238 2,852 12.39 7,205,550 4.29135,001 - 10,000 6,021,760 3.5863 6,154,091 3.665110,001 - 20,000 858 4.85 6,334,706 3.7727 40 0.23 56,607 0.0337 2,154 4.96 6,587,590 3.923320,001 - 30,000 457 2.58 3,450,851 2.0552 2.68 3,620,755 2.156430,001 - 40,000 142 0.80 2,347,155 1.3979 45 0.25 145,555 0.0867 2,192 0.84 2,487,414 1.481440,001 - 50,000 0.38 1,223,035 0.7284 0.40 1,397,674 0.832450,001 - 100,000 68 0.15 4,177,414 2.4879 20 0.11 132,331 0.0788 878 0.17 4,235,490 2.5225100,001- 1,000,000 27 0.34 18,939,101 11.2793 0.35 24,665,324 14.68951,000,001-Over 60 0.39 82,051,253 48.8661 18 0.10 252,884 0.1506 475 0.49 104,811,457 62.4211 67 0.05 138,232,554 82.3253 0.09 167,910,253 100.0000 Total 98.17 7 0.04 169,904 0.1012 149 100.00 9 17,364 4 0.02 140,259 0.0835 72 4 0.02 174,639 0.1040 31 1 0.01 58,076 0.0346 61 16 0.10 5,726,223 3.4102 83 7 0.04 22,760,204 13.5550 16 324 1.83 29,677,699 17.6747 17,688
172 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInvestor Relations1 +. 2&© ,)©.*!©˒-0\"', 07©1& 0#1˓Top 20 Shareholders as at 31st December 2014No Shareholder Name 31st December 2014 31st December 2013*1 4 **' #*©-,#©.*! No of Shares % No of Shares %2 +0©7©1©&©'©1'*4 25,107,454 14.95 25,107,454 14.963 #+.*-7##1©.0-4'\"#,2©$3,\" 16,750,207 9.98 16,738,207 9.984 0-1#5--\"©.42©*'+'2#\" !!-3,2©,- 5 &1 !©',2*©,-+©*2\" & + 223©',2#0, 2'-, *©$3,\"1 16,745,012 9.97 16,745,012 9.98 + 223© 1' ©%0-52&©$3,\" 11,789,746 7.02 11,496,342 6.856 ,-02�,©20312©!-©1 ©! 0 4#*©$3,\"© 7,166,493 4.27 7,050,493 4.20 ',2#0, 2'-, *©©*2\"7 &1 !©',2*©,-+©*2\" 12 2#©120##2©*36#+ -30%©!-©11 2© ,© +0-© 5,536,155 3.30 4,706,155 2.80 +3*2'© + , %#0©$3,\"1 4,375,557 2.60 4,375,557 2.608 #+.*-7##1©20312©$3,\"© - 0\" 4,268,091 2.54 4,468,022 2.669 1 +. 2&© ,)©.*!© !!-3,2©,-©©1 +. 2&© ,)©.#,1'-,©$3,\" 2,735,145 1.63 2,735,145 1.63 1,938,144 1.15 0.4910 &1 !©',2*©,-+©*2\" & + 223©#+#0%',%© 1' ©$3,\" 1,663,598 0.99 816,155 0.99 1,555,914 0.93 1,663,598 0.3611 +0© © ©+ &'. * 1,436,086 0.86 0.83 1,359,849 0.81 606,548 0.8112 ) 0© 0-2©.42©*2\"© !©,-© 1,311,310 0.78 1,388,010 0.39 1,359,84913 )#712-,#©.0'4 2#©*'+'2#\" 1,072,696 0.64 - 656,03714 +#**-,© ,)©, 3.1©%0-3.©20312 794,701 0.47 -15 &',* (.+! 322#0$'#*\"©20312©© #0+3\" ©©*'+'2#\" -16 ,-02�,©20312©%*- *©1#04'!#1©*36#+ -30%©1 © 1&+-0#©1'! 4© - ',\"' ,©1+ ** ! .©#/3'27©$3,\"17 &1 !©',2*©,-+©*2\" 11 2 . 0 +#20'!©#+#0%',%©+ 0)#21©$3,\" 770,500 0.46 --18 +#**-,© ,)©, # 2-,©4 ,!#©20312©!- ©!-**#!2'4#©',4 ©20312© 767,238 0.46 667,238 0.40 $-0©#+.-*7##© #,#$'2©.* ,1 # 2-,©4 ,!#©20312©!- . 0 +#20'!© 764,978 0.46 1,064,987 0.63 1203!230#\"©#+#0%',%©+)2 ©#/3'27©$3,\"© 107,908,874 64.27 101,644,809 60.5619 \"#321!&#© ,)© %© 1©20312##©$-0©, + *© !3'27©4 *3#©$3,\"20 !#7*-,©%3 0\"' ,©',4#12+#,2©20312©.*!© !©©2MR?J©,M©MD©QF?PCQ©PCEGQRCPCB 167,910,253 100.00 167,787,605 100.002MR?J©,M©MD©QF?PCQ©SLPCEGQRCPCB© - - - -2MR?J©,M©MD©QF?PCQ©GQQSCB 167,910,253 100.00 167,787,605 100.00Shares held by Directors ©© 0.06 © 0.061F?PCQ©FCJB©@W©'LQRGRSRGMLQ 108,279,461 64.49 108,394,939 64.60 35.45 35.34 ?J?LAC©FCJB©@W©.S@JGA 59,528,229 100.00 59,293,098 100.002MR?J©,M©MD©QF?PCQ©GQQSCB 167,910,253 167,787,605̎©1F?PCQ©FCJB©@W©.S@JGA - 83.31 - 84.98̎©1F?PCQ©FCJB©@W©\"GPCARMPQ©?LB©0CJ?RCB©.?PRGCQ - 16.69 - 15.02©1F?PCFMJBGLE©?Q©?R©QR©\"CACK@CP©©MD©RFC©RMN©RUCLRW©QF?PCFMJBCPQ©?Q©MD©QR©\"CACK@CP© ©+P©\"F?KKGI?©.CPCP?©GQ©RFC©!F?GPK?L©MD©4?JJG@CJ©-LC©.*!©?Q©UCJJ©?Q©1?KN?RF© ?LI©.*!©RMR?J©QF?PCQ©FCJB©@W©4?JJG@CJ©-LC©.*!©GQ©A?RCEMPGQCB©SLBCP©GLQRGRSRGMLQ © © © ©
173DIVIDEND PAYMENT DETAILS Year Total Dividend Paid Dividend Per Share ©.PMdžR©DMP©RFC©7C?P© Dividend Pay Out Rs Mn Rs Rs Mn Ratio2000 58.70 1.75 402 14.60%2001 52.14 1.75 322 16.19%2002 88.57 2.00 441 20.08%©'LRCPGK 59.78©$GL?J 21.99 2.00 561 14.58%©'LRCPGK 65.98©$GL?J 34.30 2.00 621 16.15%©'LRCPGK 87.14©$GL?J 32.21 2.00 821 14.54%2006 155.472007 206.66 2.50 1,028 15.12%2008 256.65 3.00 1,052 19.64%2009 436.19 4.00 1,414 18.15%2010 1,235.86 6.25 2,098 20.79%2011 1,426.98 8.09 3,303 37.42%2012 1,954.10 9.00 3,819 37.37%2013 1,342.30 12.00 5,230 37.36%©.PMNMQCB© 1,847.01 8.00 3,430 39.13% 11.00 4,914 37.59%RECORD OF SCRIP ISSUES Year Issue Basis New Shares Stated Capital (Rs Mn) Reason for Issue2010 Scrip dividend 1 for 120.742010 Scrip dividend 1 for 43.39 627,596 1,786.25 'LAPC?QC©QR?RCB©A?NGR?J2011 Scrip dividend 1 for 43.062012 Scrip dividend 1 for 33.12 3,521,294 2,701.79 'LAPC?QC©QR?RCB©A?NGR?J2014.PMNMQCB 3,682,039 3,523.87 'LAPC?QC©QR?RCB©A?NGR?J 4,916,007 4,457.89 'LAPC?QC©QR?RCB©A?NGR?J Scrip dividend 1 for 38.14 4,402,402 5,381.40 'LAPC?QC©QR?RCB©A?NGR?JRECORD OF SUBDIVISIONS Year Issue Basis New Shares Stated Capital (Rs Mn) Reason for Issue2010 Consolidation and 11 for 102010 subdivision 1 for 1 6,888,762 1,581.65 'LAPC?QC©GL©JGOSGBGRW Subdivision 76,403,986 1,786.25 %GNJ©@CLCdžR©RM© shareholdersEMPLOYEE SHARE OPTION PLAN 2010 Year Issue Basis New Shares Stated Capital (Rs Mn) Reason for Issue2011 #1-. 2% of issued shares CLCdžR©DMP©QR?Dž©KCK@CPQ2012 #1-. 2% of issued shares 524,924 2,743.78 CLCdžR©DMP©QR?Dž©KCK@CPQ2013 #1-. 2% of issued shares CLCdžR©DMP©QR?Dž©KCK@CPQ2014 #1-. 2% of issued shares 2,200,436 3,564.17 CLCdžR©DMP©QR?Dž©KCK@CPQ 134,933 4,460.34 122,648 4,470.15
174 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceInvestor Relations˒ ˓© + 0)#2©4 *3#1 Highest (Rs) Lowest (Rs) Year End (Rs) Debentures - 2012/2017 2014 2013 2014 2013 2014 2013 Fixed - 16.50% 114.32 107.00 100.00 95.00 114.32 107.00 Fixed - 15.00% Floating rate 108.13 103.00 100.10 90.00 107.00 100.00,2© ©,MR©2P?BCB 100.00 ©,2© 100.00 ©,2© 100.00 ©,2 Debentures - 2013/2018 Highest (Rs) Lowest (Rs) Year End (Rs) Fixed - 13.40% 2014 2013 2014 2013 2014 2013 Fixed - 13.00%,2© ©,MR©2P?BCB 110.02 101.21 102.80 101.21 110.02 101.21 118.84 ©,2© 101.00 ©,2© 118.84 ©,2© Debentures - 2014/2019 Highest (Rs) Lowest (Rs) Year End (Rs) Fixed - 8.25% 2014 2013 2014 2013 2014 2013 Fixed - 8.10%, © ©,MR© NNJGA?@JC 100.40 ©, © 100.40 ©, © 100.40 ©, © 100.00 ©, © 100.00 ©, © 100.00 ©, ©˒ ˓© ',2#0#12©0 2#1© 2014 2013 Debentures - 2012/2017 Coupon Rate #DžCARGTC©0?RC Coupon Rate #DžCARGTC©0?RC Fixed - 16.50% Fixed - 15.00% 16.50% 16.50% 16.50% 16.50% Floating rate 15.00% 16.08% 15.00% 16.08% -- -- Debentures - 2013/2018 2014 2013 Fixed - 13.40% Fixed - 13.00% Coupon Rate #DžCARGTC©0?RC Coupon Rate #DžCARGTC©0?RC Debentures - 2014/2019 13.40% 13.40% 13.40% 13.40% Fixed - 8.25% Fixed - 8.10% 13.00% 13.42% 13.00% 13.42%, © ©,MR© NNJGA?@JC 2014 2013 Coupon Rate #DžCARGTC©0?RC Coupon Rate #DžCARGTC©0?RC , , 8.25% 8.25% , , 8.10% 8.26%\"# #,230#1©˔©© © © © © © ©$JM?RGLE©P?RC©GQ©COSGT?JCLR©RM©RFC©QGV©KMLRF©2PC?QSPW© GJJ©P?RC©EPMQQ©NJSQ© ©̎©N©?©N?W?@JC©F?JD©WC?PJW ©©
175˒!˓© ',2#0#12©0 2#©-$©!-+. 0 *#©%-4#0,+#,2©1#!30'2'#1©˔©%0-11©0 2#1 2014 20133 Month Treasury Bill 6.38% 9.21%6 Month Treasury Bill 6.49% 9.59%˒\"˓© !300#,2©7'#*\"© ,\"©7'#*\"©2-©+ 230'27© Fixed Fixed Floating Debentures - 2012/2017 16.50% 15.00%Current yield 2014 2013 2014 2013 2014 2013Yield to maturity of last trade 8.49% , 14.43% 15.42% 14.01% 15.00% 8.49% ,2 10.52% 13.98% 11.89% 16.01%,2© ©,MR©2P?BCB©?LB©, © ©,MR© NNJGA?@JC Fixed Fixed Debentures - 2013/2018 13.40% 13.00% Current yield 2014 2013 2014 2013 Yield to maturity of last trade, © ©,MR© NNJGA?@JC 12.17% 13.24% 10.94% , Debentures - 2014/2019 11.72% 13.04% 7.51% , Current yield Fixed Fixed Yield to maturity of last trade, © ©,MR© NNJGA?@JC 8.25% 8.10%˒#˓© 0 2'-1©˔© ,) 2014 2013 2014 2013 \"C@R©RM©COSGRW©P?RGM©̎© 8.25% , 8.10% , 'LRCPCQR©AMTCP©2GKCQ /SGAI©?QQCR©P?RGM©̎ 8.25% , 8.10% , 2014 2013 76.52 58.04 6.60 7.09 84.54 87.58
principledbusinesspractices STEWARDSHIP
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178 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Management G4-2 The Bank has been successful in nurturing a risk culture that aptly balances growth and risk, supported by a well-RISK MANAGEMENT BCdžLCB©PGQI©?NNCRGRC©AMKNPCFCLQGTC©NMJGAW©DP?KCUMPI© CDžCARGTC©EMTCPL?LAC©QRPSARSPCQ©?LB©?NNPMNPG?RC©Sampath Bank continues to make headway in its tools and techniques to measure and manage risk.?NNPM?AF©RM©0GQI©+?L?ECKCLR©CTMJTGLE©DPMK©?©NMQGRGML© Consequently, risk considerations form a critical inputwhere the responsibility was vested in an individual in all business decisions and are aligned with the Bank’sSLGR©RM©MLC©GL©UFGAF©?L©MPE?LGQ?RGML UGBC©0GQI©!SJRSPC© organisational structure and business strategy.is institutionalised, permeating all units and individuals.RISK HIGHLIGHTS IN 2014 Interest rate risk: 2FC©0GQI©U?Q©PCESJ?PJW©KMLGRMPCB©?LB© KGRGE?RCB©QM©RF?R©,CR©'LRCPCQR©+?PEGL©U?Q©UCJJ©K?L?ECB %PMURF©GL©JM?LQ©?LB©?BT?LACQ© ̎© ̎ Total impairment/ Total Advances: 2.27% Liquidity risk: *GOSGBGRW©JCTCJQ©UCPC©K?GLR?GLCB©UCJJ©?@MTC©RFC© ©© ̎ QR?RSRMPW©KGLGKSKQ©UGRF©?NNPMNPG?RC©JGOSGBGRW©@SDžCPQ 'LAPC?QCB©NMPRDMJGM©BGTCPQGdžA?RGML©UGRF©PCBSACB© Exchange rate risk:©0CESJ?P©KMLGRMPGLE©MD©RFC©*GKGRQ©?LB© exposure to pawning advances ?BMNRGML©MD©NPSBCLR©0GQI©+GRGE?RGMLQ©JCB©RM©KGLGKGQGLE© #VAF?LEC©*MQQCQ©?LB©?©FC?JRFW©#VAF?LEC©%?GL©U?Q©?AFGCTCB© during the year. CREDIT RISK MARKET RISK OPERATIONAL RISK STRATEGIC & REPUTATIONAL RISK JJ©'LRCPL?J©*MQQ©#TCLRQ©NCPR?GLGLE©RM© ?QCJ© SQGLCQQ© Sampath Bank has been rated by the rating agencies as*GLCQ©F?TC©@CCL©AMJJCARCB©DPMK©RFC©WC?P©© DMJJMUQ©©onwards. Fitch Rating: $GRAF©0?RGLE©*?LI?©*GKGRCB©F?Q©?LjPKCB©,?RGML?J©2FC© ?LI©AMLQMJGB?RCB©GRQ©B?R?@?QC©MD©'LRCPL?J©*MQQ© *MLE©2CPK©0?RGLE©MD© JI?©QR?@JC©RM©1?KN?RF© ?LI #TCLRQ©DMP©MTCP©©WC?PQ©SQGLE©RFC©-NCP?RGML?J©0GQI©'2©System. Lanka Rating Agency: ©QR?@JC Awards Won by the Bank in 2014 © 1PG©*?LI?Q© CQR©!MKKCPAG?J©?LB©0CR?GJ© ?LI©GL©© awarded at the World Finance Banking Awards. © CQR© ?LI©GL©1PG©*?LI?© ©©@W©RFC©NPCQRGEGMSQ© Business Magazine “The Euromoney” for the second consecutive year Gold award - Banking Sector Category for 2013 Annual 0CNMPR©?R©RFC©! ©1PG©*?LI?© LLS?J©0CNMPR© U?PBQ© Competition Best Corporate Citizen Sustainability Award - Top Ten 0CAGNGCLR
179 Gold Award for Commercial Applications and a Bronze U?PB©DMP©'L FMSQC©\"CTCJMNCB© NNJGA?RGMLQ©#JCARPMLGA© 2CJJCP©1WQRCK©?R©RFC©,?RGML?J© CQR©/S?JGRW©'!2© U?PBQ© 2014. © CQR©!MKKSLGRW©.PMEP?K©*C?BCPQFGN© U?PB©?R©RFC© QG?© 0CQNMLQG@JC© SQGLCQQ©#VACJJCLAC© U?PBQ©© © ,?RGML?J©*CTCJ©2?JCLR©+?L?ECKCLR© U?PB©?R©RFC© ,?RGML?J©&0+©!MLDCPCLAC© © CQR©2CJCTGQGML©!MKKCPAG?J©MD©RFC©7C?P© ©QR©0SLLCP©3N© at the Sumathi Awards 2014 for Television Commercial on Sampath Sevana © CQR©1SQR?GL?@GJGRW©.PMHCAR© U?PBQ© ©5GLLCP©?U?PBCB©RM© &MNC©DMP©?©*GDC©NPMEP?KKC© ©©#LBMUKCLR©MD©,CSPM© ,?TGE?RMP©1WQRCK©RM©,?RGML?J©&MQNGR?J©1PG©*?LI?© © CQR©1SQR?GL?@GJGRW©.PMHCAR© U?PBQ© ©!CPRGdžA?RC©MD©+CPGR© for “Outstanding Eco Teams”. © CQR©1SQR?GL?@GJGRW©.PMHCAR© U?PBQ© ©!CPRGdžA?RC©MD©+CPGR© DMP©5CU?R?©(CCU?W?I©©©0CLMT?RGML©MD©\"CK?R?U?©2?LI© GL©.?LBSU?QLSU?P? © 1GJTCP© U?PB©GL©RFC©A?RCEMPW©MD©!10© P?LB©MD©RFC©7C?P©?R© 1*'+© P?LB©#VACJJCLAC© U?PB©!CPCKMLW © 1?KN?RF© ?LI©5C@QGRC©UML©RFC©1'*4#0© 5 0\"©?R© RFC© CQR5C@ *)©©!MKNCRGRGML©GL©RFC©!MPNMP?RC© ?LIGLE©$GL?LAC©?LB©'LQSP?LAC©A?RCEMPW The Bank has been RISK GOVERNANCEsuccessful in nurturinga risk culture that 2FC© ?LIQ©?NNPM?AF©RM©0GQI©+?L?ECKCLR©GQ©AJC?PJW©QCR©aptly balances growth MSR©GL©GRQ©0GQI©%MTCPL?LAC©$P?KCUMPI©UFGAF©GQ©?NNPMTCB©and risk, supported @W©RFC© M?PB©'LRCEP?RCB©0GQI©+?L?ECKCLR©!MKKGRRCC©@W©?©UCJJ BCdžLCB©PGQI© '0+! ©2FC©DP?KCUMPI©AMLQGQRQ©MD©EMTCPL?LAC©appetite, comprehensive committees, at both Board and Executive levels whichpolicy framework, MNCP?RC©UGRF©AJC?PJW©BCdžLCB©K?LB?RCQ©PMJCQ©?LB©CDžCARGTC©EMTCPL?LAC© responsibilities and a Board-approved policy framework.structures and The latter details the standards, tools and techniquesappropriate tools and RM©@C©SQCB©DMP©RFC©CDžCARGTC©GBCLRGdžA?RGML©?QQCQQKCLR©techniques to measure monitoring, management and mitigation of risks in alland manage risk. key aspects of the Bank’s operations. Approved policies UGRFGL©RFC© ?LIQ©NMJGAW©DP?KCUMPI©GLAJSBC©!PCBGR©0GQI© +?PICR©0GQI©*GOSGBGRW©0GQI©0CNSR?RGML?J©0GQI©-NCP?RGML?J© 0GQI©1RP?RCEGA©0GQI©'LRCEP?RCB©0GQI©?LB©1RPCQQ©2CQRGLE© among others.
180 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk ManagementRISK GOVERNANCE COMMITTEES SAMPATH BANKBOARD LEVEL COMMITTEESBoard Integrated Risk Credit Policy, Risk and Portfolio Review Committee EXECUTIVE LEVEL COMMITTEESManagement CommitteeExecutive Advances Committee Board Audit Committee Advances Committee Board Treasury Committee Asset & Liability Management Committee Investment Committee Board Credit Committee IT Steering Committee ICAAP Committee Outsourcing Committee Procurement Committee SLFRS Committee Management CommitteeG4 - 45, 46, EC2
181 Committee Composition Role and responsibilitiesBoard Level Committees 'BCLRGDW©KMLGRMP©?LB©KC?QSPC©RFC©MTCP?JJ© 0GQI©.PMdžJC©MD©RFC© ?LI©GL©?L©GLRCEP?RCB©Board Integrated Risk $MSP©,ML #VCASRGTC©\"GPCARMPQ © mannerManagement Committee Managing Director © Develop/recommend policies and2FC©?NCV©AMKKGRRCC©DMP©0GQI© Group CFO/Executive Director procedures; verify models that are used forManagement within the Bank, %PMSN©0GQI©-LjACP ?QQGELGLE©?JJ©K?RCPG?J©PGQIQ©SLBCP© ?QCJ©''©and set up in compliance with %PMSN©!MKNJG?LAC©-LjACP advanced approachesRFC©!CLRP?J© ?LI©\"GPCARGTC©,M© 1CRPCAMKKCLB©JGKGRQ©@W©BCdžLGLE©RFC© ?LIQ©11 of 2007. Management personnel 0GQI© NNCRGRC©?LB©KMLGRMPQ©RFC©0GQI©.PMdžJC© representing the functions ?E?GLQR©RFC©N?P?KCRPCQ©QCR©GL©RFC©0GQI© MD©!PCBGR©+?PICR©*GOSGBGRW© Appetite -NCP?RGML?J©1RP?RCEGA©0GQIQ© Examine risk scenarios to measure the and Compliance are also invited impact of unusual market conditions to the committee meetings as Monitor compliance of various risk necessary parametres by business lines 0CESJ?PJW©PCNMPR©RM© M?PB©MD©\"GPCARMPQ©ML©RFC© © 0GQI©+?L?ECKCLR©?LB©!MKNJG?LAC©QR?RSQ©MD© the Bank.Board Audit Committee $GTC©,ML #VCASRGTC©\"GPCARMPQ © © 0CTGCU©GLRCEPGRW©MD©?AAMSLRGLE©?LB©PCNMPRGLE©0MJCQ©?LB©DSLARGMLQ©?PC© supported by, Managing systems © 0CTGCU©'LRCPL?J© SBGR©PCNMPRQ©?LB©JG?GQC©UGRF©regulated by the Banking Act Director !MPNMP?RC©+?L?ECKCLR©+?L?EGLE©\"GPCARMP© Group CFO/Executive Director, and all DGMs/\"GPCARGML©,M©©MD©©0SJCQ© %+Q©GL©R?IGLE©NPCA?SRGML?PW©KC?QSPCQ©RM© minimise control weaknesses, procedureon Corporate Governance as Group CFO/Executive Director violations, frauds and errors. 0CTGCU©'LRCPL?J© SBGR©NPMEP?KKC©?LB©K?IC©NCP©RFC©*GQRGLE©0SJCQ©MD©RFC© \"%+ $GL?LAC©&C?B©MD©'LRCPL?J© appropriate changes Assessing the independence and monitoringColombo Stock Exchange and Audit, Senior Manager-Systems the performance and functions of the 'LRCPL?J© SBGR©RFC©!MBC©MD© CQR©.P?ARGACQ©ML© Audit, External Auditors Appointment/discontinuation of External AuditorCorporate Governance issued 'LTCQRGE?RC©?LW©?ARGTGRW©GLAJSBGLE©K?RRCPQ© raised under Whistle-blowing@W©RFC©1#!©?LB©RFC©'LQRGRSRC©MD© .PMTGBC©ESGB?LAC©RM©RFC©2PC?QSPW©GL©Chartered Accountants of Sri carrying out its functions and to monitor its performance*?LI? #QR?@JGQF©2PC?QSPW©+?L?ECKCLR©.MJGAGCQ Monitor the liquidity position, Foreign © #VAF?LEC©0?RC©0GQI©?LB©GLRCPCQR©P?RC©PGQI©MD© the BankBoard Treasury Committee 2FPCC©,ML #VCASRGTC©\"GPCARMPQ© ©Board Credit Committee and two Executive Directors Approve credit facilities as delegated by the Board of Directors Management personnel © 0CAMKKCLBGLE©RM©RFC© M?PB©ML©RFC©!PCBGR© representing the functions of .MJGAW©MD©RFC© ?LI©GLAJSQGTC©MD©RFC©K?VGKSK© 2PC?QSPW©0GQI©?LB©$GL?LAC©?PC© © limits of exposure to each major sector of also invited to the committee © the economy. meetings as necessary. 0CAMKKCLBGLE©!PCBGR©NMJGAW©AF?LECQ©RM©RFC© Board. $GTC©,ML ©#VCASRGTC©BGPCARMPQ© and two Executive Directors. Management personnel representing the functions of !PCBGR©?LB©0GQI©+?L?ECKCLR© are invited for the committee meetings
182 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Management Committee Composition Role and responsibilitiesExecutive Level CommitteesCredit Policy, Risk and Chair - Managing Director © 0CQNMLQG@JC©DMP©PCTGCUGLE©RFC©!PCBGR©.MJGAW©Portfolio Review Committee \"%+Q©?LB© %+Q©GL©*CLBGLE© procedures and performance of the Bank. 0CAMTCPGCQ© Monitors indicators such as delinquentExecutive Advances %PMSN©0GQI©-LjACP exposure, cross border exposure etc.Committee Heads of Credit Departments, Deciding prudential limits on lending andAdvances Committee !PCBGR©0GQI©+?L?ECKCLR©?LB© providing suggestions for capital allocation in DGM Treasury are also invited JGLC©UGRF©RFC©QCR©0GQI© NNCRGRC Asset and Liability for the meetingsManagement Committee Chair - Managing Director, Approval of credit facilities as delegated by theInvestment Committee 1CLGMP©\"%+©?LB©1CLGMP©\"%+© Board Credit Committee Corporate BankingIT Steering Committee Senior DGM, Senior DGM- Approval of credit facilities as delegated by theInternal Capital Adequacy !MPNMP?RC© ?LIGLE©*GLC© Board Credit CommitteeAssessment Process (ICAAP) Assistant General Manager /Committee Chief Manager of Credit.Outsourcing Committee Chair-Managing Director, GCFO, Overall responsibility for managing the Bank’s %PMSN©0GQI©-LjACP©©1CLGMP© Balance Sheet within the performance and risk \"%+©!MPNMP?RC© ?LIGLE© N?P?KCRCPQ©BCdžLCB©@W©RFC© M?PB DGM-Treasury, DGM Finance, AGM-Corporate Credit, DGM- Marketing and Business Development, AGM - Corporate Finance & FCBU, Chief Dealer, Chief Manager Finance, Head of Deposits Chair-Managing Director, Overall responsibility pertaining to decisions on Executive Director/GCFO, investment activities such as investments in stocks, \"CNSRW©%CLCP?J©+?L?ECP©© debt instruments etc. Treasury, Senior DGM, Senior \"%+©©!MPNMP?RC© ?LIGLE© %PMSN©0GQI©-LjACP Chair-Managing Director 0CQNMLQG@GJGRW©DMP©?JJ©?QNCARQ©PCJ?RCB©RM©RFC© ?LIQ© Senior management information technology infrastructure including PCNPCQCLR?RGTCQ©DPMK©'2© automation, security, and procurement. -NCP?RGMLQ©0GQI©+?PICRGLE© Systems Audit and Finance Chair-Group CFO / Executive 0CQNMLQG@GJGRW©RM©CLQSPC©RF?R©RFC© ?LI©KCCRQ©RFC© Director,Senior management PCOSGPCKCLRQ©MD©'! .©GL©RGKCJW©?LB©?AASP?RC© representatives from Finance, manner. 0GQI© *!-©.J?LLGLE©'2©?LB© 'LRCPL?J© SBGR Chair-Managing Director The committee is responsible for the supervision Key decision makers from of all the Bank’s outsourced activities including !MKNJG?LAC©0GQI©-NCP?RGMLQ©'2© setting the criteria for selection, approving the and Systems Audit selection of service providers and other related decisions.
183 Committee Composition Role and responsibilitiesProcurement Committee Chair-Managing Director 0CQNMLQG@GJGRW©RM©CLQSPC©RF?R©RFC© ?LI©KCCRQ©RFC©SLFRS Committee Group CFO / Executive Director, PCOSGPCKCLRQ©MD©0CESJ?RGMLQ©?LB© ?LIQ©.MJGAGCQ 0CQNCARGTC©JGLC© %+\"%+©MD© .PMACBSPCQ©GL©F?LBJGLE©NPMASPCKCLRQManagement Committee the relevant business/functional area Chair-Managing Director 0CQNMLQG@GJGRW©DMP©CLQSPGLE©RF?R©NMJGAGCQ©?LB© Group CFO / Executive Director,, NPMACBSPCQ©?PC©GL©NJ?AC©DMP©1*$01©GKNJCKCLR?RGML© \"%+©$GL?LAC©%PMSN©0GQI©-LjACP© planning/execution and reporting functions. Heads of key departments in 1*$01©GKNJCKCLR?RGML Chair-Managing Director © 0CAMKKCLBGLE©!MPNMP?RC©-@HCARGTCQ© Group CFO, all DGMs and AGMS © 1RP?RCEGA©.J?LQ©?LB© SBECRQ©RM©RFC© M?PB .PMTGBC©*C?BCPQFGN©RM©BCTCJMN©NJ?L©?LB© © execute strategic and operational plans 0CTGCU©RFC© ?LIQ©džL?LAG?J©?LB©MNCP?RGML?J© © performance against set targets and take steps to correct any deviations © #LQSPC©RF?R©?JJ©*CE?J0CESJ?RMPW©AMKNJG?LAC© requirements of the Bank are duly met. Make operational decisions Decide and assume responsibility on action DMP©CLQSPGLE©QMSLB©?LB©CLjAGCLR©-NCP?RGMLQ© +?L?EGLE©0GQI© SQGLCQQ©!MLRGLSGRW©?AFGCTGLE© set targets, managing the Bank’s reputation, and ensuring regulatory/legal compliance and any other area related to the Bank coming under its purview. Ensure customer service standards of the Bank are maintained at high levels and customer grievances are duly addressed. NNMGLR©GLRCPL?J©.PMHCAR©2C?KQAMKKGRRCCQ© and set terms of referenceTHREE LINES OF DEFENCE MODEL © .PMKMRGLE©?©QRPMLE©PGQI©ASJRSPC©?LB©?U?PCLCQQ©MD© PGQI©CJCKCLRQ©RFPMSEF©CDžCARGTC©AMKKSLGA?RGML©?LB©2FC© ?LIQ©0GQI©+?L?ECKCLR©DP?KCUMPI©GQ©@?QCB©ML©RFC© training.2FPCC©*GLCQ©MD©\"CDCLAC©%MTCPL?LAC©KMBCJ©UFGAF©CLQSPCQ©RFC©AJC?P©GBCLRGdžA?RGML©?LB©QCEPCE?RGML©MD©BSRGCQ ©2FGQ© © .PC©APCBGR©CT?JS?RGML.MQR©APCBGR©KMLGRMPGLE©?Q©widely accepted governance model has enabled the Bank applicableto manage its risks through a transparent and consistentframework. Second Line of Defence: This line of defence consists MD©RFC©ACLRP?JGQCB©MTCPQGEFR©@W©RFC©0GQI©+?L?ECKCLR©First Line of Defence©2FC©džPQR©JGLC©MD©BCDCLAC©AMKNPGQCQ© unit and includes the implementation of governanceMD©RFC©GBCLRGdžA?RGML©K?L?ECKCLR©?LB©PCNMPRGLE©MD© standards, frameworks and policies for each type of riskrisks at business unit level. Decentralised primary that the Bank is exposed to. This ensures consistency inPCQNMLQG@GJGRGCQ©CLQSPC©RF?R©QNCAGdžA©PGQIQ©?PC©K?L?ECB© RFC©?NNPM?AF©RMU?PBQ©0GQI©+?L?ECKCLR©?APMQQ©?JJ©RFC©CDžCARGTCJW©AJMQC©RM©RFC©QMSPAC©?R©UFGAF©RFC©PGQI©?PGQCQ © Bank’s business lines. Centralised oversight is provided)CW©0GQI©+?L?ECKCLR©PCQNMLQG@GJGRGCQ©DMP©RFC©@SQGLCQQ© through;units include; © $MPKSJ?RGLE©RFC©'LRCEP?RCB©0GQI©+?L?ECKCLR© Self-assessment of risk and control framework Compliance with all policies and procedures © 0CTGCUGLE©?LB©PCNMPRGLE©MD©PGQIQ©MD©RFC©@SQGLCQQ© units, products, processes and systems to the relevant business units, management committees ?LB© '0+!©?Q©PCOSGPCB
184 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Management Challenging the self-assessments, inherent risks © 'LBCNCLBCLR©KMLGRMPGLE©MD©2PC?QSPW©MNCP?RGMLQ© ?LB©GLRCPL?J©AMLRPMJQ©GBCLRGdžCB©@W©@SQGLCQQ©SLGRQ© adherence to Treasury operating limits, exposure to© 'LBCNCLBCLRJW©GBCLRGDWGLE©?LB©?QQCQQGLE©RFC©PGQIQ© +?PICR©0GQIQ©?LB©GKNJCKCLRGLE©MP©PCAMKKCLBGLE© the Bank is exposed to, also considering the Board appropriate actions to mitigate risks in this area. ?NNPMTCB©0GQI© NNCRGRC©*GKGRQ©?LB©PCAMKKCLBGLE© action to mitigate risks Third Line of Defence: This comprise of the audit/ Overseeing the development of a risk-culture and compliance functions which provide independent and its links with the anti-fraud framework. M@HCARGTC©?QQSP?LAC©ML©RFC©0GQI©+?L?ECKCLR©NPMACQQCQ©© 'QQSGLE©?L©GLBCNCLBCLR©0GQI©MNGLGML©DMP©?JJ©APCBGR© and practices in place. These functions have the authority ?NNP?GQ?JQ©?@MTC©?©QNCAGdžCB©RFPCQFMJB to communicate with the External Auditors and the Board Conducting reviews on loan facilities to ascertain Audit Committee. Assurance is provided through; the compliance to covenants and ensuring the maintenance of credit quality. © !MKNJG?LAC©PCESJ?RMPW©PCNMPRGLE©'LRCPL?J© SBGR©© .PMTGBGLE©GLBCNCLBCLR©TCPGdžA?RGML©ML©RFC©NPMACQQ© and compliance with anti-money laundering and level of impairment carried out by the business measures SLGRQ©DMP©GLBGTGBS?JJW©QGELGdžA?LR©@MPPMUCPQ © +MLGRMPGLE©AMKNJG?LAC©UGRF©RFC© ?LIQ©MTCP?JJ©0GQI© Management frameworkFUNCTIONAL RESPONSIBILITY STRUCTURE BOARD OF DIRECTORS Managing Director BIRMC %PMSN©!MKNJG?LAC©-LjACP %PMSN©0GQI©-LjACP AML and Compliance Unit Integrated Risk Management Unit Credit Risk Management Unit Market Risk Management Unit Operational Risk Management UnitCredit Risk Management Credit Risk Review Function Function
185 © #LQSPGLE©RFC©PM@SQRLCQQ©MD©RFC©0GQI©+?L?ECKCLR© RISK APPETITE tools and techniques in place. 2FC© ?LIQ©0GQI© NNCRGRC©GQ©AJC?PJW©BCdžLCB©@W©GRQ© M?PB©MD©2FC©'LRCEP?RCB©0GQI©+?L?ECKCLR©3LGR©'0+3©GQ©FC?BCB© Directors, and is expressed in the form of tolerance limits@W©RFC©%PMSN©0GQI©-LjACP©?LB©FMJBQ©MTCP?JJ©PCQNMLQG@GJGRW© and risk appetite triggers across a range of variablesDMP©RFC© ?LIQ©0GQI©+?L?ECKCLR©DSLARGML ©'R©MNCP?RCQ© PCLJCARGTC©MD©?JJ©ICW©PGQIQ©RFC© ?LI©GQ©CVNMQCB©RM ©2FC©GLBCNCLBCLRJW©DPMK©NPMdžR©?LB©TMJSKC©R?PECRQ©?LB© risk appetite is also a crucial element in the formulationformulates the overall policy framework for measuring, of the Bank’s strategies and policy framework. The riskmonitoring and mitigating the risk exposures of the Bank. NPMdžJC©GQ©KMLGRMPCB©?E?GLQR©RFC©N?P?KCRPCQ©QCR©MSR©GL©Three separate units have been established within the the risk appetite on a consistent basis, through regular'0+3©DMP©K?L?EGLE©-NCP?RGML?J©+?PICR©?LB©!PCBGR©0GQIQ reviews, reporting and related controls. Risk Appetite-Criteria Limit / RangeCredit Risk - (Credit Quality and Concentration) 30% of Capital Base of the Bank1GLEJC© MPPMUCP©#VNMQSPC©'LBGTGBS?J 40% of Capital Base of the Bank1GLEJC© MPPMUCP©#VNMQSPC©%PMSN© 55% maximum EEPCE?RC©#VNMQSPC©DSLBCB© ©LML©DSLBCB©RM©*?PEC© MPPMUCPQ©©©2MR?J©#VNMQSPC©DSLBCB© ©LML©DSLBCB©̎ 10% - 15%*?PEC©@MPPMUCPQ©&?TGLE©?©!PCBGR©#VNMQSPC©MD©KMPC©RF?L©̎©MD© ?LIQ©Capital Base 7.5% maximum*CLBGLE©RM© EPGASJRSPC©©2MR?J©#VNMQSPC©̎© Below 1600©+?LB?RMPW©0COSGPCKCLR©̎ Below 1600#VNMQSPC© E?GLQR©1F?PCQ©©2MR?J©#VNMQSPC©̎ More than 80%1CARMP UGQC©!MLACLRP?RGML©&&'©1AMPC©.PMBSAR UGQC©!MLACLRP?RGML©&&'©1AMPC 31\"©+L©K?VGKSK© ©MP© #VNMQSPC©DMP©0GQI©0?RGLE©MTCP©RFC©%P?BC©! ©?LB©?@MTC 21 % minimumMarket Risk *CQQ©RF?L©̎,CR©-NCL©.MQGRGML© 85% - 95 %*GOSGB© QQCRQ©0?RGM© 30% - 35%,CR©*M?LQ©RM©2MR?J© QQCRQ© *CQQ©RF?L©©̎2MR?J©*M?LQ©RM©!SQRMKCP©\"CNMQGRQ© *CQQ©RF?L©̎*GOSGB© QQCRQ©RM©1FMPR©2CPK©*G?@GJGRGCQ© *CQQ©RF?L©̎ SJI©\"CNMQGRQ©-TCP©0Q©©+L©RM©2MR?J©\"CNMQGRQ ©̎©K?VGKSK.SPAF?QCB©$SLBQ©RM©2MR?J© QQCRQ© ©̎©K?VGKSK!MKKGRKCLRQ©RM©2MR?J©*M?LQ© ©̎©K?VGKSKOperational Risk ©̎©K?VGKSK'LRCPL?J©$P?SB ©̎©K?VGKSKExternal Fraud ©̎©K?VGKSK#KNJMWKCLR©.P?ARGACQ©?LB©5MPINJ?AC©1?DCRW ©̎©K?VGKSK!JGCLRQ©.PMBSARQ©© SQGLCQQ©.P?ARGACQ\"?K?EC©RM©.FWQGA?J© QQCRQBusiness Disruption and System Failures#VCASRGML©\"CJGTCPW©©.PMACQQ©+?L?ECKCLR©© &CPdžLB?FJ ©&GPQAFK?L©'LBCV©©&&'©QAMPCQ©P?LEC©DPMK©©RM© ©5C©KSJRGNJW©RFC©QAMPCQ©@W©©DMP©C?QW©PC?B?@GJGRW ©2FC©QAMPCQ©@CJMU©©GQ© considered un-concentrated while over 1,800 is considered highly concentrated. Our computations have been carried-out on lending products and sectors©© ̎©QFMUL©?PC©DPMK©-TCP?JJ©!SKSJ?RGTC©-NCP?RGML?J©0GQI© NNCRGRC©*GKGR©UFGAF©GQ©0Q©©+L©?©WC?P
186 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk ManagementSTRESS TESTING testing activities support multiple risk related processes GLAJSBGLE©?QQCQQGLE©AF?LECQ©GL©PGQI©NPMdžJC©BCdžLGLE©PGQI©The Bank’s stress testing policy framework is approved appetite and tolerance levels as well as establishingby the Board and clearly sets out procedures and contingency plans. Stress testing is carried out onKCRFMBMJMEW©RM©@C©?BMNRCB ©'L©NPGLAGNJC©QRPCQQ©RCQRGLE© all major risks the Bank is exposed to, with multiplecalculates the potential impact on the Capital Adequacy variables being sensitised in order to gauge the impact0?RGM©! 0©?Q©?©PCQSJR©MD©QNCAGdžA©AF?LECQ©GL©BCdžLCB© ML©!?NGR?J© BCOS?AW©0?RGM ©.MPRDMJGM QNCAGdžA©QRPCQQ©T?PG?@JCQ©JGLICB©RM©RFC©T?PGMSQ©RWNCQ©MD©0GQIQ © RCQRGLE©DMP©CV?KNJC©ML©RFC©N?ULGLE©NMPRDMJGM©GQ©?JQM© conducted quarterly, or earlier, as required.2FC© '0+!©AMLBSARQ©PCESJ?P©PCTGCUQ©MD©RFC©QRPCQQ©testing outcomes including major assumptions that G4 - 2underpin them. The outputs from the Bank’s stress Default Concentration *GOSGBGRW© 'LRCPCQR©0?RC© #OSGRW©0GQI Foreign 0GQI 0GQI 0GQI 0GQI #VAF?LEC©0?RC© .PGAC©QFMAI©ML©Low, Medium and High *?PEC©CVNMQSPC© 'LAPC?QC©GL©&&'© Deposit 0?RC©QFMAIQ© equity portfolio 0GQI Stressed Scenarios withdrawals on interest default score sensitive assets 0?RC©QFMAI© on net open position Asset quality *M?L©PMJJ MTCPQ 0?RC©QFMAIQ© downgrade on interest sensitive liabilitiesImpact ! .'2 *© \"#/3 !7©0 2'- AssessmentCREDIT RISK UGRFGL©RFC©'0+3©MNCP?RCQ©GLBCNCLBCLRJW©DPMK©RFC© @SQGLCQQ©JGLCQ©?LB©GQ©PCQNMLQG@JC©DMP©BPGTGLE©?JJ©!PCBGR©0GQI©!PCBGR©0GQI©GQ©RFC©NMRCLRG?J©DMP©JMQQ©BSC©RM©RFC©D?GJSPC©MD© +?L?ECKCLR©CDžMPRQ©MD©RFC© ?LI©?R©DSLARGML?J©JCTCJ a customer or a counterparty to meet their obligationsto pay in accordance with agreed terms and conditions. Policy Framework:!PCBGR©0GQI©A?L©?PGQC©DPMK©BCD?SJR©PGQI©AMLACLRP?RGML©MD© The Bank’s credit risk policy framework is approved bycounterparties, business sectors or geographical regions the Board of Directors, and is reviewed and updated onand country risk. ?©PCESJ?P©@?QGQ©SNML©PCAMKKCLB?RGML©DPMK©RFC© '0+! © 2FC©!PCBGR©0GQI©.MJGAW©GQ©GL©JGLC©UGRF©RFC©!CLRP?J© ?LI©MD©How We Manage Our Credit Risk 1PG©*?LI?Q©'LRCEP?RCB©0GQI©+?L?ECKCLR©DP?KCUMPI©DMP© licensed commercial / specialised banks, Directives onCredit Risk Governance !MPNMP?RC©%MTCPL?LAC©?LB©\"GPCARGTC©,M©©MD©©ML©2FC©!PCBGR©.MJGAW©0GQI©?LB©.MPRDMJGM©0CTGCU©!MKKGRRCC© RFC©1SNCPTGQMPW©0CTGCU©.PMACQQ©MD©.GJJ?P©©MD©RFC© ?QCJ©functions as the steering committee with overall %SGBCJGLCQ©?Q©UCJJ©?Q©MTCP?JJ© ?QCJ©''©ESGBCJGLCQ ©PCQNMLQG@GJGRW©DMP©GKNJCKCLRGLE©RFC©APCBGR©0GQI©Management framework of the Bank. Meanwhile, the!PCBGR©0GQI©+?L?ECKCLR©3LGR©!0+3©UFGAF©DSLARGMLQ©
187During the year under 2FC©)CW©NPGLAGNJCQ©MD©RFC© ?LIQ©!PCBGR©0GQI©.MJGAW©?PCreview, the Bank focused Establishing an appropriate credit risk environmenton further strengthening Operating under a sound credit granting processGRQ©.PC APCBGR©?QQCQQKCLR© Maintain an appropriate credit administration,©0GQI©+?L?ECKCLR©?LB© measuring and monitoring process.MQR APCBGR©KMLGRMPGLE© Ensuring adequate controls over credit risk based0GQI©0CTGCU©NPMACQQCQ on the Bank’s risk appetite.Credit Risk Credit Granting Maintaining Credit RiskEnvironment Process Adequate Credit Mitigation and Administration, Control © ,SPRSPC©?©ASJRSPC©MD© Delegated approval Measurement and risk awareness authority at multiple Monitoring Process Credit risk mitigation JCTCJQ©© M?PB©!PCBGR© policies and © 0CESJ?P©?LB© Committee, Executive © .MQR©APCBGR©KMLGRMPGLE© procedures are comprehensive Advances Committee, ©5CJJ©BCdžLCB© used in a consistent training programmes Managing Director responsibility for manner. DMP©?JJ©PCJ?RCB©QR?Dž CRA monitoring with Collateral is valued Segregation of duties © 1MSLB©UCJJ©BCdžLCB© emphasis on internal appropriately and in credit approval/ credit criteria and external early updated regularly. risk management/ © 0M@SQR©GLRCPL?J© warning signals Other risk mitigants credit administration !PCBGR©0?RGLE©+MBCJQ APCBGR©GLQSP?LAC© © .PSBCLRG?J©©JGKGRQ© © 1RPCQQ©RCQRGLE ©!0+3© ES?P?LRCCQ© © #DžCARGTC©PGQI© set in line with conducts stress tests are evaluated governance risk appetite and scenario analyses carefully taking into structures AMSLRCPN?PRW© to assess the possible consideration the sector, geographical impact of multiple counterparty risks, CVNMQSPC©JGKGRQ internal and external and legal implications Structured and variables. © .CPGMBGA©PCNMPRGLE© comprehensive credit Comprehensive @W©!0+3©RM© appraisal interim reviews %0-©!MPNMP?RC© © 'LBCNCLBCLR©.PC of selected large Management, credit review by exposures !PCBGR©.MJGAW©0GQI© !0+3 ?LB©.MPRDMJGM© © #DžCARGTC©K?L?ECKCLR© 0CTGCU©!MKKGRRCC©© of concentration !MKKGRRCC© '0+!© risk through and Board Credit analytical tools Committee. QSAF©?Q©©&CPdžLB?FJ © &GPQAFK?L&&'©'LBCV© and periodic reporting RM©RFC© '0+! Focus Areas in Credit Risk Management 2014 MD©BCD?SJR©.\"©?Q©RFC© ?LI©QRPGTCQ©RMU?PBQ©'LRCPL?J© 0?RGLEQ©@?QCB©?NNPM?AF©GL©?AAMPB?LAC©UGRF© ?QCJ©''©During the year under review, the Bank focused on guidelines.DSPRFCP©QRPCLERFCLGLE©GRQ©.PC APCBGR©?QQCQQKCLR©©0GQI© © !MKNJCRCB©GKNJCKCLR?RGML©MD©RFC©!PCBGR©0GQI©+?L?ECKCLR©?LB©.MQR APCBGR©KMLGRMPGLE©©PGQI©PCTGCU© +?L?ECKCLR©'2©NJ?RDMPK©CL?@JGLE©?AASP?RC©?LB©processes. automatic computation of capital charge for credit risk.'L©.PC APCBGR©?QQCQQKCLR©©0GQI©+?L?ECKCLR©RFC© ?LI © 1RPCLERFCLCB©RFC©0GQI© NNCRGRC©$P?KCUMPI© Enhanced systems for the collection and processing NCPR?GLGLE©RM©APCBGR©PGQI©GL©MPBCP©RM©@CRRCP©PCLJCAR©PGQIQ© of data relating to risk ratings and defaults with the arising from changes in macroeconomic variables. objective of determining the portfolio’s probability
188 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk ManagementMeanwhile, post-credit monitoring was strengthened by : The portfolio performance improved during the year, © #QR?@JGQFKCLR©MD©?©!PCBGR©0GQI©0CTGCU©$SLARGML© PCLJCARGLE©RFC© ?LIQ©CDžMPRQ©RM©QRPCLERFCL©GRQ©APCBGR© ?QQCQQKCLR©?LB©NMQR APCBGR©KMLGRMPGLE©CDžMPRQ © !00$©UGRFGL©RFC©!PCBGR©0GQI©+?L?ECKCLR© Unit. This function oversees post-credit risk Default Risk management throughout the Bank, and ensures RF?R©APCBGR©D?AGJGRGCQ©?PC©KMLGRMPCB©CDžCARGTCJW© Default risk is the key component of credit risk and by the branches and credit departments on an comprises of potential losses arising from the default ongoing basis. of a borrower or counterparty. Default risk can arise © 1RPCLERFCLGLE©MD©RFC©*M?L©0CTGCU©+CAF?LGQK© RFPMSEF©@MRF©@?J?LAC©QFCCR©?LB©MDž©@?J?LAC©QFCCR© which now includes frequent branch/department exposure. Stringent pre-credit evaluation and post credit visits to gauge inadequacies and take corrective monitoring have enabled the Bank to maintain a healthy action if required. credit quality in its loan portfolio. Comprehensive portfolio evaluation on a monthly basis; this is carried out at Bank level for the Concentration Risk CLRGPC©NMPRDMJGM©?Q©UCJJ©?Q©?R©0CEGML?J!PCBGR© Departmental level. Concentration risk stems from high lending exposure to Conducting independent assessments on a particular customer/group, sector, product or region. GKN?GPKCLRQ©A?PPGCB©MSR©@W©PCJ?RGMLQFGN©MLjACPQ© The Bank consistently monitors multiple indicators and recommending improvements if necessary. related to concentration, such as name concentration, sector breakdowns, product and regional exposures.Credit Portfolio Characteristics in 2014 M?PB©?NNPMTCB©NPSBCLRG?J©JGKGRQ©?PC©BCdžLCB©KMLGRMPCB©The Bank’s credit growth slowed to 14.6% during 2014 regularly and reviewed annually. The Bank’s lending© ̎©CKSJ?RGLE©RFC©MTCP?JJ©QJMUBMUL©GL©NPGT?RC© NMPRDMJGM©AMLRGLSCQ©RM©@C©UCJJ©BGTCPQGdžCB©UGRF©CVNMQSPC©sector credit expansion witnessed across the industry. spread across multiple sectors, geographical regions andThe measures initiated last year to reduce exposure customer segments.to pawning facilities continued in 2014, with totaloutstanding pawning facilities accounting for a reduced G4 - 27% of the Bank’s total loans and advances, compared to18% in 2013. SECTOR-WISE BREAKDOWN OF 18 SECTOR-WISE BREAKDOWN OF 21 LOAN PORTFOLIO (2013) 18 LOAN PORTFOLIO (2014) % % 2 2 2 2 3 3 3 3 3 4 5 5 5 7 6 14 1 7 10 7 13 12 11 11 2 Traders Pawning Manufacturing Traders Manufacturing Other Customers Agriculture and Fishing Other Customers Staff Agriculture and Fishing Pawning Financial and Business Services Tourism Staff Financial and Business Services Construction Infrastructure Other Services (Education/Health/Media, Other) Tourism Construction Infrastructure New Economy Credit Card Transport Other Services(Education/Health/Media ,Other) New Economy Credit Card Transport
189 % of total portfolio COLLATERAL - WISE 2014 (Cumulative) Large exposures 7.34% % 7.60 12.83%Top 5 19.88% 0.04 30.76Top 10 0.16Top 20 1.04 0.41 1.16 3.14 3.25 3.52 3.78!MLACLRP?RGML©PGQI©GQ©KC?QSPCB©SQGLE©RFC©&CPdžLB?FJ© 4.49&GPQFK?L©'LBCV©&&' ©5CJJ BGTCPQGdžCB©NMPRDMJGMQ©F?TC©&&'©T?JSCQ©AJMQC©RM©XCPM©UFGJC©PCJ?RGTCJW©AMLACLRP?RCB© 8.21 20.10NMPRDMJGMQ©F?TC©FGEFCP©&&'©T?JSCQ ©2FC© ?LIQ©&&'©QAMPC© 12.34for name concentration was 86, which is considered lowconcentration. Imm. Property, Plant & Mech. Other securities Stock in trade FDs, CDs and other deposits Shares, bonds, life policy Unsecured loans Tractors & motor vehiclesCollateral Management Hire purchase agreementsCollateral obtained by the Bank is utilised as a secondary Person.Guarant. and pronotesQMSPAC©MD©PCAMTCPW©GL©RFC©CTCLR©RF?R©A?QF©LJMUQ©UFGAF© Clean Documentary billsGQ©RFC©NPGK?PW©AMLQGBCP?RGML©?PC©LMR©DMPRFAMKGLE ©Collateral accepted by the Bank include cash, property, RFC, NRFC & RNNFC accounts GolddžVCB©?QQCRQ©QSAF©?Q©NJ?LR©?LB©K?AFGLCPW©GLTCLRMPGCQ© Govt. Securities Trust receiptstradable securities, guarantees, bills and standby lettersof credit. The Bank adopts a cautious and stringent © \"CRCPGMP?RGML©MD©RFC©OS?JGRW©MD©RFC© ?LIQ©?BT?LACQ©approach towards collateral valuation, and frequently as determined by a decline in quality of lendingreviews and updates such values in order to ensure that assets, assuming further delay in repayments byRFCW©?PC©PCLJCARGTC©MD©K?PICR©T?JSC © borrowersStress Testing: Credit Risk © \"CD?SJRQ©@W©RFC©J?PEC©@MPPMUCPQ©CE ©RMN©@MPPMUCP© RMN©©@MPPMUCPQ©RMN©©@MPPMUCPQ©CRA Stress testing was carried out during the year to gaugethe potential impact of the following scenarios; © 'LAPC?QCB©APCBGR©AMLACLRP?RGML©RM©JCLBGLE©NPMBSARQ© ?LB©@MPPMUCP©QCARMPQ ©&&'©QAMPC©U?Q©SQCB©RM©E?SEC© the level of concentrationFurther details on the Stress Testing scenario assumptions are given in the table below.Stress Testing Scenario Low Medium High*?PEC©#VNMQSPC©BCD?SJR *?PECQR© *?PECQR©© *?PECQR©© borrower borrowers borrowersConcentration risk 'LAPC?QC©GL©&&'©1AMPC 10% 20% 30%Asset downgrade 0CESJ?P©RM©1NCAG?J©+CLRGML 10% Special Mention to Substandard 2% 5% 15% Substandard to Doubtful 15% \"MS@RDSJ©RM©*MQQ 5% 10% 15% 10% 10%Stess Testing Results: Credit Risk Low Medium High Stress Testing Scenario 12.95% 12.36% 11.91% 2014 13.61% 13.60% 13.60% *?PEC©CVNMQSPC©BCD?SJR© ©1RPCQQCB©! 0 13.36% 12.88% 12.11% !MLACLRP?RGML©0GQI© ©1RPCQQCB©! 0 QQCR©BMULEP?BC© ©1RPCQQCB©! 0
190 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Management1RPCQQCB©! 0©GQ©?@MTC©PCESJ?RMPW©PCOSGPCKCLR©SLBCP© LIQUIDITY RISKall Stress Testing scenarios. This is expected to improveduring, 2015 with the retention of earnings. *GOSGBGRW©PGQI©GQ©RFC©NMRCLRG?J©JMQQ©MD©C?PLGLEQ©?LB or erosion of capital arising from the inability to meet'L©?BBGRGML©N?ULGLE©NMPRDMJGM©U?Q©AJMQCJW©KMLGRMPCB©?LB© the Bank’s obligations in a timely manner as and whenQRPCQQCB©RM©?QACPR?GL©RFC©GKN?AR©ML©LJSARS?RGML©MD©EMJB© they are due. Given the inherent mismatch betweenprices the maturity of the Bank’s assets and liabilities and the resultant liquidity risk exposure, the management of suchMARKET RISK risks is a crucial element of the Bank’s daily operations.Market risk is the potential loss that could arise from Managing Our Liquidity Riskthe possible fall in value of a portfolio, either investmentor trading due to changes in market variables such as The main governance committee overseeing liquidityinterest rates, equity prices and foreign exchange rates. PGQI©GQ©RFC© *!- ©2FC© *!-©GQ©PCQNMLQG@JC©DMP©CLQSPGLE© RF?R©RFC© ?LI©K?GLR?GLQ©QSLjAGCLR©JGOSGBGRW©JCTCJQ©RM©KCCR©The key market risks that the Bank is exposed to are GRQ©AMLRP?ARS?J©M@JGE?RGMLQ©?LB©?L©?BCOS?RC©@SDžCP©GL©'LRCPCQR©0?RC©0GQI©#OSGRW©0GQI©$MPCGEL©#VAF?LEC©0?RC© the event of unforeseen eventualities. The Committee0GQI©?LB©*GOSGBGRW©0GQI consistently monitors the Bank’s liquidity position in order to ensure that it is in line with the Bank’s internalHow We Manage Our Market Risk targets as well as Central Bank regulatory requirements and determines necessary actions to prevent non-Market Risk Governance compliance. Measurement of all major currencies is alsoThe primary governance committee overseeing market PCNMPRCB©RM©RFC© *!-©UFGAF©CT?JS?RCQ©?LB©R?ICQ©RFC©PGQI©GQ©RFC© QQCR©*G?@GJGRW©+?L?ECKCLR©!MKKGRRCC© *!-© relevant decisions.UFGAF©GQ©AF?GPCB©@W©RFC©+?L?EGLE©\"GPCARMP ©2FC© *!-©operates with the overall responsibility for monitoring the Liquidity MeasurementBank’s interest rate, exchange rate, liquidity and equity *GOSGBGRW©GQ©KC?QSPCB©RFPMSEF©RFC©BS?J©?NNPM?AFCQ©MD©PGQI © Q©2PC?QSPW©MNCP?RGMLQ©A?L©EGTC©PGQC©RM©QGELGdžA?LR© QRMAI©?LB©LJMU ©2FC©QRMAI©KCRFMB©CT?JS?RCQ©JGOSGBGRW©GL©risks, the Treasury management framework is monitored terms of key ratios which demonstrate the liquid asset@W©RFC©+GBBJC©-LjAC©UFGAF©MNCP?RCQ©GLBCNCLBCLRJW©DPMK© stored at the Balance Sheet date. These ratios include,RFC©2PC?QSPW ©'R©KMLGRMPQ©RPC?QSPW©MNCP?RGLE©JGKGRQ©QSAF© ,CR©*M?LQ©RM© QQCRQ©*M?LQ©RM©!SQRMKCP©\"CNMQGRQ©*GOSGB©as open position limits, counterparty limits, dealer limits QQCRQ©RM©1FMPR 2CPK©*G?@GJGRGCQ©?LB©1R?RSRMPW©*GOSGB©etc. which are periodically reviewed and updated. QQCRQ©1* ©0?RGM©?KMLE©MRFCPQ ©+C?LUFGJC©RFC©A?QF LJMU©@?QCB©KCRFMB©?L?JWQCQ©NMRCLRG?J©A?QF©GLLJMUQ©?LB©Policy Framework MSRLJMUQ©GL©T?PWGLE©RGKC©@SAICRQ©@?QCB©ML©RFC©K?RSPGRW©MD©The policy framework governing the Bank’s market risk assets and liabilities.AMLQGQRQ©MD©RFC©+?PICR©0GQI©+?L?ECKCLR©.MJGAW© QQCR©?LB©*G?@GJGRW©+?L?ECKCLR©.MJGAW©2PC?QSPW©.MJGAW©'LTCQRKCLR© Funding Sources.MJGAW©*GOSGBGRW©+?L?ECKCLR©.MJGAW©?LB©1RPCQQ©2CQRGLE© 2FC© ?LI©?BMNRQ©?©BGTCPQGdžCB©DSLBGLE©QRP?RCEW©QMSPAGLE©.MJGAW ©2FCQC©DP?KCUMPIQ©AMJJCARGTCJW©NPMTGBC©ESGB?LAC© liquidity from multiple sources. Key considerations whenon the procedures, tools and techniques for assessing, determining sources of funding include the competitivemanaging, monitoring and reporting all aspects related environment, market conditions and regulatoryRM©K?PICR©PGQI ©2FC©UCJJ BCdžLCB©NMJGAW©DP?KCUMPI©GQ©GL© AMLQGBCP?RGMLQ ©0CR?GJ©BCNMQGRQ©?PC©RFC© ?LIQ©J?PECQR©JGLC©UGRF© ?QCJ©''©PCOSGPCKCLRQ©!CLRP?J© ?LI©PCESJ?RGMLQ© funding source. Within its deposit portfolio, depositorand industry best practise and provides guidance on the concentration is relatively low.management of all key types of market risks the Bank isexposed to.
191 CONTINGENCY FUNDING PLAN Utilisation of Excess SLA 0CA?JJ©MD©2CKNMP?PW©-TCPBP?NJQ Utilisation of SLA at a PenaltyStress Testing: Liquidity Risk Low Medium High2014'KN?AR©MD©̎©̎©̎©QFMAIQ©?NNJGCB©RM©BCNMQGRQ©K?RSPGLE©@CWMLB©© months and loans due within 3 months1RPCQQCB©! 0 13.6231% 13.6231% 13.5522%'L©RFC©?@MTC©QRPCQQ©RCQRGLE©ML©*GOSGBGRW©0GQI©1RPCQQCB©! 0©PCK?GLQ©?@MTC©PCESJ?RMPW©PCOSGPCKCLR©SLBCP©?JJ©QRPCQQ©RCQRGLE©QACL?PGMQ Contingency Funding Plan © ?QGQ©0GQI©?PGQCQ©DPMK©RFC©FCBEC©NPGAC©LMR©KMTGLE©The Bank has in place a contingency funding plan to in line with the price of the hedged positionprotect stakeholder interests and maintain marketAMLdžBCLAC©GL©RFC©CTCLR©MD©?©JGOSGBGRW©APGQGQ ©2FC©NJ?L© © 7GCJB©!SPTC©0GQI©?PGQCQ©DPMK©QFGNJQ©GL©RFC©WGCJB©AMLQGQRQ©MD©PCKCBG?J©?ARGMLQ©?LB©?©QNCAGdžCB©MPBCP©MD© curve that have a negative impact on the Bank’ssources to access liquidity in the event of a liquidity earnings/asset values.shortfall. Managing Our Interest Rate RiskStress testing is carried out regularly to evaluatethe impact of factors such as unexpected high value 2FC© ?LIQ©'LRCPCQR©0?RC©0GQI©+?L?ECKCLR©DP?KCUMPI©GQ©withdrawals and loan rollovers on the asset liability BCdžLCB©GL©GRQ© M?PB©?NNPMTCB©NMJGAGCQ©?LB©GQ©GLLJSCLACB©KGQK?RAF ©'L©RFC©CTCLR©RF?R©?©QGELGdžA?LR©LCE?RGTC© @W©RFC©AMKNCRGRGTC©GLBSQRPW©GR©MNCP?RCQ©GL ©.PSBCLRG?J©mismatch is observed in the 3 months bucket the liquid JGKGRQ©?PC©AJC?PJW©BCdžLCB©DMP©D?ARMPQ©QSAF©?Q©K?VGKSK©contingency plan is executed. maturity periods and duration. Decisions pertaining to the re-pricing of the Bank’s portfolio are made by theINTEREST RATE RISK *!- ©2FC©AMKKGRRCC©PCESJ?PJW©KMLGRMPQ©RFC©KMTCKCLRQ© in the market interest rates together with the Bank’s'LRCPCQR©P?RC©PGQI©GQ©RFC©NMRCLRG?J©JMQQ©PCQSJRGLE©DPMK©RFC© asset liability maturity mismatches as well as results ofBank’s exposure to assets and liabilities of which the periodic stress testing and scenario analysis.T?JSCQ©LJSARS?RC©GL©JGLC©UGRF©AF?LECQ©GL©GLRCPCQR©P?RCQ ©The Bank is exposed to interest rate risk through its The techniques used to measure the Bank’s interest ratelending activities, deposit liabilities, trading securities risk consist of both earnings and valuation based tools.CRA ©'LRCPCQR©P?RC©PGQI©GQ©?©ICW©AMKNMLCLR©MD©K?PICR©PGQI© 2FC©+MBGdžCB©BSP?RGML©E?N©GQ©SQCB©RM©CT?JS?RC©AF?LECQ©GL©and can be further categorised into the following sub-risk RFC©#AMLMKGA©4?JSC©MD©#OSGRW©#4# ©0?RC©QCLQGRGTC©?QQCRQ©types : and liabilities are mapped into time buckets based on their maturity period, in order to gauge the duration gap © 0CNPGAGLE©0GQI©?PGQCQ©DPMK©RFC©T?PWGLE©K?RSPGRGCQ© of equity. This approach is also used to assess the capital of the Bank’s assets and liabilities which results charge applicable for interest rate risk arising from RGKGLE©BGDžCPCLACQ©GL©PCNPGAGLE © interest rate sensitive assets and liabilities.
192 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk ManagementStress Testing: Interest Rate Risk Low Medium High20142MN©©'KN?ARQ©MD© ̎©RM© ̎©AF?LEC©GL© interest rates on rate sensitive assets / liabilities1RPCQQCB©! 0 13.2980% 12.9868% 12.6886%'L©RFC©?@MTC©QRPCQQ©RCQRGLE©ML©'LRCPCQR©0?RC©0GQI©1RPCQQCB©! 0©PCK?GLQ©?@MTC©PCESJ?RMPW©PCOSGPCKCLR©SLBCP©?JJ©QRPCQQ©RCQRGLE©QACL?PGMQInterest Rate Gap Analysis (Rs ’000) Asset or Liability 0 to 1 0 to 3 0 to 6 0 to 12 Over 12 Month Months Months Months MonthsInterest Earning Assets 163,647,779 216,802,671 260,544,458 280,960,476 391,998,397 ?LI© ?J?LACQ©?LB©.J?ACKCLRQ 2,719,304 2,719,304 3,799,911 3,799,911 3,799,911 29,537,279 29,537,279 29,537,279 29,537,279 29,537,279Treasury Bills and Bonds 33,463,028 35,404,050 37,504,496 39,934,165 56,291,6291CASPGRGCQ©?LB©'LTCQRKCLRQ 97,928,168 149,142,038 189,702,772 207,689,121 302,369,578*M?LQ©© BT?LACQOthers - - - - -Interest Bearing Liabilities 182,527,251 245,732,704 281,228,323 331,703,439 362,802,905Deposits 166,936,421 225,386,537 257,976,110 307,611,902 313,466,321BorrowingsOthers 15,590,830 20,346,167 23,252,213 24,091,537 49,336,584Net Rate Sensitive Assets - - - - -(Liabilities) © © © © 29,195,4922FC©#?PLGLEQ©?R©0GQI©# 0©RCAFLGOSC©?L?JWQCQ©RFC©GKN?AR© Managing Our Equity Riskof interest rate changes on accrued or reported earnings,particularly on net interest income. 2FC©'LTCQRKCLR©!MKKGRRCC©FMJBQ©MTCP?JJ©PCQNMLQG@GJGRW© for the management and monitoring of the Bank’s'LRCPCQR©0?RC©%?N© L?JWQGQ©FCJNQ©SQ©RM©GBCLRGDW©RFC©LCR© GLTCQRKCLRQ ©2FC©GLTCQRKCLR©ESGBCJGLCQ©?PC©QNCAGdžCB©GL©?KMSLR©MD©'LRCPCQR©#?PLGLE© QQCRQ*G?@GJGRGCQ©%?N©RF?R© the Board approved policies which detail internal limitsK?RSPC©UGRFGL©?©RGKC©@SAICR ©.MQGRGTC©E?NQ©GLBGA?RC©RF?R© based on the guidelines issued by the Central Bank asmore interest earning assets are maturing within the well as the Bank’s risk appetite. The return on the equityrespective time bucket compared to interest bearing portfolio, movements in stock market prices as well asliabilities, and negative gaps indicate vice versa broader economic conditions which could potentially have an impact on share prices are monitored on aEQUITY RISK PCESJ?P©@?QGQ ©0GQI©KGRGE?RGML©BCAGQGMLQ©?PC©?JQM©K?BC©@W© RFC©'LTCQRKCLR©!MKKGRRCC ©+C?LUFGJC©QRPCQQ©RCQRGLE©ML©This is the risk of loss arising from the adverse movement the equity portfolio is carried out on a regular basis andin the value of any equity investment held by the Bank. PCNMPRCB©RM©RFC© '0+!©@W©+?PICR©0GQI©©+GBBJC©-LjAC Stock market prices can decline due to multiple reasons,including deterioration in performance or net asset value 2FC© ?LIQ©COSGRW©NMPRDMJGM©F?B©?©K?PICR©T?JSC©MD©0Q©©of the particular company. +L©?R©RFC©WC?P©CLB©UFGAF©GQ©PCJ?RGTCJW©GLQGELGdžA?LR©RM©RFC© size of the Bank.
193 EXCHANGE RATE MOVEMENT 2014 AMLBGRGMLQ©?LB© ?LIQ©0GQI© NNCRGRC ©+C?LUFGJC©GL© order to ensure the adequacy of internal controls inUSD RATE 130.75 to treasury management, there is a clear segregation of 131.20 responsibilities between the Front, Middle and Back -LjACQ ©-NCL©NMQGRGMLQ©?PC©PCESJ?PJW©PC T?JSCB©UFGJC©1.25 toYEN RATE asset liability maturities and forex exposures are 1.10 AMLRGLSMSQJW©KMLGRMPCB ©4?JSC©?R©0GQI©A?JASJ?RGMLQ©?Q© well as stress testing are carried out regularly on theForeign Exchange Rate Risk portfolios subject to foreign exchange rate risk.2FC© ?LI©GQ©CVNMQCB©RM©DMPCGEL©CVAF?LEC©$MPCV©P?RC© Focus Areas in Market Risk Management inrisk through its holding of assets denominated in foreign 2014ASPPCLAW©RFC©T?JSC©MD©UFGAF©UGJJ©LJSARS?RC©UGRF©CVAF?LEC©rate movements. During the year, the Bank placed emphasis on further enhancing the mechanisms in place to2FC© ?LIQ©DMPCGEL©CVAF?LEC©P?RC©0GQI©+?L?ECKCLR© assess, measure and monitor Foreign Exchangeis guided by its Board approved policy framework. 0?RC©*GOSGBGRW©?LB©'LRCPCQR©0?RC©0GQIQThe limits set in the framework are persistently © 2FC©4?JSC©?R©0GQI©4 0©?QQCQQKCLR©ML©RFC© ?LIQ©monitored and updated as required, in line with market Treasury Bill portfolio which was introduced last year was further expanded to cover the entire portfolio during the current year. The Bank is also making preparations to obtain the services of CVRCPL?J©CVNCPRQ©RM©T?JGB?RC©RFC©4 0©KMBCJQ©RF?R© ?PC©ASPPCLRJW©GL©SQC©GL©RFC© ?LIQ©0GQI©+?L?ECKCLR© systems.Stress Testing: Equity Risk Low Medium High2014+?ELGRSBC©MD©#OSGRW©.PGAC©QFMAI ̎ ̎ ̎1RPCQQCB©! 0 13.6192% 13.6133% 13.6034%'L©RFC©?@MTC©QRPCQQ©RCQRGLE©ML©#OSGRW©0GQI©1RPCQQCB©! 0©PCK?GLQ©?@MTC©PCESJ?RMPW©PCOSGPCKCLR©SLBCP©?JJ©QRPCQQ©RCQRGLE©QACL?PGMQ Stress Testing: Foreign Exchange Rate Risk Low Medium High2014+?ELGRSBC©MD©#VAF?LEC©0?RC©QFMAI ̎ ̎ ̎1RPCQQCB©©! 0 13.6208% 13.6186% 13.6163%'L©RFC©?@MTC©QRPCQQ©RCQRGLE©ML©$MPCGEL©#VAF?LEC©0?RC©0GQI©1RPCQQCB©! 0©PCK?GLQ©?@MTC©PCESJ?RMPW©PCOSGPCKCLR©SLBCP©?JJ©QRPCQQ©RCQRGLE©scenarios.
194 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Management The stress testing framework was further extended AMLRPMJQ ©-RFCP©QMSPACQ©DMP©PGQI©GBCLRGdžA?RGML©GLAJSBC© during the year to include all areas of market and actual internal loss experience, and relevant external liquidity risks operational loss experiences if available. The year under review also saw the Bank commencing preliminary work on a Treasury ©)CW©0GQI©'LBGA?RMP©)0'©DP?KCUMPI©F?Q©@CCL©BCTCJMNCB© System upgrade project which would enable GL©MPBCP©RM©QGKNJGDW©RFC©PGQI©GBCLRGdžA?RGML©NPMACQQ©?APMQQ© treasury related functions to be performed more ?JJ©@SQGLCQQ©SLGRQ ©2FC©DP?KCUMPI©AJ?QQGdžCQ©RFC©ICW©PGQIQ© CLjAGCLRJW©UFGJC©GKNJCKCLRGLE©RFC©PCOSGQGRC©PGQI© the Bank is exposed to in a non-technical manner. The KGRGE?RGLE©NPMACQQCQ©CDžCARGTCJW )0'©DP?KCUMPI©GQ©SNB?RCB©OS?PRCPJW©?LB©QS@KGRRCB©RM©OPERATIONAL RISK '0+!©DMP©GLDMPK?RGML©?LB©BGPCARGMLQ©UFCPC©?NNPMNPG?RC © +GRGE?RGTC©?ARGMLQ©DMP©GBCLRGdžCB©0GQI©?PC?Q©?PC©PCESJ?PJW©Operational risk is the direct or indirect loss resulting GLGRG?RCB©@W©RFC©-0+3©GL©AMLASPPCLAC©UGRF©RFC©!MPNMP?RC©from inadequate or failed internal processes, people, +?L?ECKCLR©?LB© '0+! ©2FC©RFPCQFMJBQ©DMP©)0'Q©F?TC©systems or from external events. According to Basel AMLQCPT?RGTCJW©@CCL©BCdžLCB©?R©RFGQ©GLGRG?J©QR?EC©?LB©''©BCdžLGRGMLQ©JCE?J©PGQI©GQ©GLAJSBCB©?Q©?©AMKNMLCLR©MD© they will be reviewed annually in line with the actual-NCP?RGML?J©0GQI NCPDMPK?LAC©?LB© M?PB©?NNPMTCB©0GQI© NNCRGRC©MD©RFC© Bank.How We Manage Our Operational Risk MonitoringGovernance 2FC© ?LIQ©PCACLRJW©GLQR?JJCB©MNCP?RGML?J©PGQI©'2©QWQRCK©The business/functional units within the Bank hold overall enables the accurate monitoring of operational risks.PCQNMLQG@GJGRW©DMP©K?L?EGLE©RFC© ?LIQ©-NCP?RGML?J©0GQI© The system includes a comprehensive operationalGL©JGLC©UGRF©RFC©BCdžLCB©N?P?KCRCPQ ©2FC©-NCP?RGML?J©0GQI© loss database which allows losses to be tracked on a+?L?ECKCLR©3LGR©-0+3©DSLARGMLQ©UGRFGL©RFC©'LRCEP?RCB© consistent basis. All branches and departments report0GQI©+?L?ECKCLR©3LGR©?LB©AMLQR?LRJW©PCTGCUQ©RFC© internal loss events on a continuous basis and thepolicies and processes in place to manage operational events are collected in the database. Each operationalrisk as well as mitigation strategies. A comprehensive loss is monitored with an analysis of each occurrence?LB©UCJJ BCdžLCB©NMJGAW©DP?KCUMPI©?NNPMTCB©@W©RFC© M?PB© and description of the nature and cause of loss, andof Directors, and the internal procedures which are in P?RCB©@?QCB©ML©QCTCPGRW©?LB©JMQQ ©2FC©-NCP?RGML?J©0GQI©JGLC©UGRF©RFC© ?LIQ©.MJGAGCQ©NPMTGBC©QNCAGdžA©ESGB?LAC©ML© Management Unit evaluates operational performancemanaging the risks associated with people, processes and measures such as volume, turnover, settlement facts,technology while achieving organisational objectives. delays and errors and takes necessary action to integrate the required internal controls into the Bank’s operations.'BCLRGdžA?RGML©?LB© QQCQQKCLR 2FC© '0+!©GQ©PCESJ?PJW©SNB?RCB©ML©RFC©JMQQ©CTCLRQ©?LB©'BCLRGdžA?RGML©MD©NMRCLRG?J©PGQI©?PC?Q©GL©ICW©MNCP?RGMLQ©GQ© decisions / actions are taken with regard to loss eventsBMLC©RFPMSEF©0GQI©?LB©!MLRPMJ©1CJD© QQCQQKCLRQ©0!1 © above the agreed threshold levels.which are carried out by all key business units at least onan annual basis. The assessments entail the evaluation Control and MitigationMD©RFC©CVNMQSPC©JCTCJ©ML©C?AF©ICW©PGQI©@?QCB©ML©BCdžLCB© The Bank’s mitigants and response plans are in lineparametres set out in the assessment procedures, for with industry best practise and are in compliance with@MRF©GLFCPCLR©?LB©PCQGBS?J©PGQIQ ©+C?LUFGJC©RFC©-0+3© PCESJ?RMPW©PCOSGPCKCLRQ ©5CJJ BCdžLCB©QCEPCE?RGML©MD©engages with employees in business units through duties, clear management reporting lines, robust internalperiodic workshops in order to assess the residual controls together with a policy and procedure frameworkrisks and determine appropriate corrective action and ESGBC©RFC© ?LI©GL©KGRGE?RGLE©GRQ©-NCP?RGML?J©0GQI
195Key Risk Indicators Framework Area Indicator Threshold (Quarterly)Retail Banking: Adequacy of&0©QR?LjLE©JCTCJQ©RM©KCCR© 1R?Dž©RSPLMTCP Warning - 1.0%work load/plans Critical - 2.0%Retail Banking: Compliance?LB©*CE?J©©1R?Dž©@PC?AFCQ©MD© ,SK@CP©MD©'LRCPL?J©DP?SBQ©NCP©@SQGLCQQ©© Warning - 0.009code of conduct including functional unit Critical - 0.012ethical standards, integrity?LB©AMLdžBCLRG?JGRW Total fraud value reported during the quarter, per business / 5?PLGLE© ©0Q©©Retail Banking: Technology functional unit !PGRGA?J© ©0Q© Total number of breakdowns per ATMRetail Banking: Credit Warning - 0.6Operations Value of Dud and Stolen articles reported Critical - 0.8Retail Banking: Credit Card Value of Dud and Stolen articles compared to total pawning 5?PLGLE© ©0Q© ©+LOperations Advances as a percentage !PGRGA?J© ©0Q© ©+L Warning - 0.01% Critical - 0.05% ,SK@CP©MD©APCBGR©BCD?SJRQ©F?LBCB©MTCP©RM©PCAMTCPGCQ©DMP© Warning - 0.5 recovery and legal action per Branch / Credit Department Critical - 0.75 Value of the credit defaults handed over to recoveries for Warning - 0.175% PCAMTCPW©?LB©JCE?J©?ARGML©?Q©?©NCPACLR?EC©MD© BT?LAC©.MPRDMJGM Critical - 0.35% 0CNMPRCB©RMR?J©LSK@CP©MD©APCBGR©A?PBQ©JMQR©©QRMJCL©AMKN?PCB© Warning - 0.009% to total credit card base, Critical - 0.010% 4?JSC©MD©AMSLRCPDCGR©?LB©!,.©A?PB©LMR©NPCQCLRCB©APCBGR©A?PB© Warning - 0.04% frauds compared to total advances Critical - 0.05 % 0CNMPRCB©RMR?J©LSK@CP©MD©AMSLRCPDCGR©APCBGR©A?PBQ©AMKN?PCB© Warning - 0.043% to total credit card base Critical - 0.058%Internal Loss Event Reports interpretation of relevant laws or regulations applicable to the Bank.2FC©'LRCPL?J©*MQQ©#TCLRQ©?PC©AMJJCARCB©?LB©AJ?QQGdžCB©?Q©per Basel requirements. Many of the events reported 2FC© ?LIQ©*CE?J©0GQI©+?L?ECKCLR©GQ©GKNJCKCLRCB©are being recovered during the year, and they are being through its comprehensive framework of internalA?RCEMPGQCB©?Q©,C?P©+GQQCQ©MLAC©PCAMTCPW©GQ©AMKNJCRCB © NPMACBSPCQ©?LB©BGPCARGTCQ © SQGLCQQ©*GLCQ©©3LGRQ©?PC© responsible for ensuring that the exposure to legal risk isPeople Risk minimised; all legally binding agreements are approved ?LB©QGELCB©MDž©@W©RFC©PGQI©AMKNJG?LAC©?LB©JCE?J©BGTGQGML©.CMNJC©PGQI©AMLQGQRQ©MD©RFC©NMRCLRG?J©JMQQCQ©?PGQGLE© of the Bank and internal procedures are in place tofrom human resource related aspects such as lack of duly discharge responsibilities under such contracts.appropriate human resources, inappropriate employee Furthermore, independent risk reviews are carried outactivity and failure to comply with employee related NCPGMBGA?JJW©RM©CLQSPC©RF?R©?JJ©JCE?J©PGQIQ©?PC©GBCLRGdžCB©requirements. The Bank manages risks attached to assessed and mitigated.GRQ©UMPIDMPAC©RFPMSEF©AMKNPCFCLQGTC©&0©NMJGAGCQ©?LB©NPMACQQCQ©CDžCARGTC©PCAPSGRKCLR©NP?ARGACQ©NCPDMPK?LAC© Technology Riskmanagement programmes and investment in training?LB©BCTCJMNKCLR ©!MLRGLSMSQ©QR?Dž©CLE?ECKCLR©?ARGTGRGCQ© 2CAFLMJMEW©PGQI©GQ©BCdžLCB©?Q©RFC©PGQIQ©?QQMAG?RCB©UGRF©are carried out, in order to ensure an open dialog and the ownership, use, operation, involvement and adoptionCDžCARGTC©AMKKSLGA?RGML©UGRF©?JJ©CKNJMWCCQ ©+C?LUFGJC© MD©'2©UGRFGL©RFC© ?LI ©2FGQ©GLAJSBCQ©@PC?IBMULQ©?LB©manpower requirements for the year are aligned with the D?GJSPCQ©GL©'2©QWQRCKQ©RCAFLMJMEGA?J©M@QMJCQACLAC©?LB©Bank’s strategic plan in order to ensure the adequacy of inadequate infrastructure to support business volumeshuman resources for the Bank’s expansion plans. among others.Legal Risk The Banking sector continues to focus on the use of innovative technology in the delivery of products andThis is the risk arising from non-compliance with services. Technology has thus emerged as a key sourceregulatory/statutory provisions, uncertainty due tolegal actions or uncertainty in the applicability or
196 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Managementof competitive edge, with increased emphasis placed on 0CNSR?RGML?J©PGQIQ©?PC©RFMQC©RF?R©GKN?AR©RFC© ?LIQ©internet/mobile connectivity based services. This has led current or prospective earnings capacity due to damageto a heavy reliance on technology to support complex RM©GRQ©GK?EC©RFPMSEF©RFC©JMQQ©MD©AMLdžBCLAC©MP©@PC?IBMUL©processes as well as the handling of a large amount of of relationships with transactional stakeholders.critical information, thus underscoring the importance ofCDžCARGTC©'2©0GQI©+?L?ECKCLR © How We Manage Our Strategic and Reputational Risks2FC© ?LIQ©'2©DP?KCUMPI©GQ©EMTCPLCB©@W©GRQ©'2©NMJGAGCQ©and procedures, which is reviewed and monitored by The Bank’s approach towards managing its strategicRFC© ?LIQ©'2©1RCCPGLE©!MKKGRRCC©?LB©'2©\"CN?PRKCLR © and reputation risk is a cohesive one, encapsulating allDetermining the required upgrades in technology is business units and employees. The Bank’s strategies,?©APSAG?J©CJCKCLR©MD©RFC©1RP?RCEGA©.J?LLGLE©NPMACQQ © together with the business plans are discussed2FC©'2©BCN?PRKCLR©AMLQGQRCLRJW©PCTGCUQ©RFC©LCCB©DMP© extensively and approved by the Board and the CorporateQWQRCK©GLRCEP?RGMLQ©KMBGdžA?RGMLQ©?LB©RFC©SQC©MD©LCU© Management. Actual performance is monitored againstQMNJU?PC©?LB©F?PBU?PC ©1WQRCK© SBGRQ©?PC©AMLBSARCB© the strategic objectives on a continuous basis. Meanwhile,for each system, based on which adequate controls are the Bank’s code of ethics, a culture which upholds valuesGKNJCKCLRCB ©2FC©'2©?LB©1WQRCKQ© SBGR©BGTGQGMLQ©?JQM© of honesty and integrity, as well as the Bank’s well-AMLRGLSMSQJW©KMLGRMP©KCRFMBQ©RM©GKNPMTC©RFC©CLjAGCLAW© articulated policy framework play a crucial role in theand delivery of the Bank’s key operations by utilising MPE?LGQ?RGMLQ©0CNSR?RGML?J©0GQI©+?L?ECKCLR advances in technology. Policy FrameworkKey Focus Areas in Operational RiskManagement in 2014 2FC© ?LI©F?Q©GL©NJ?AC©?©1RP?RCEGA©0GQI©+?L?ECKCLR©.MJGAW© approved by the Board, which outlines the structures © 'LRPMBSARGML©MD©-NCP?RGML?J©0GQI©1RPCQQ©2CQRGLE and processes to manage the strategic risks faced by the © 2FC©-NCP?RGML?J©0GQI©'2©QWQRCK©U?Q©SNB?RCB©UGRF© ?LI ©2FC© ?LIQ©!SQRMKCP©%PGCT?LAC©&?LBJGLE©.MJGAW© the internal loss events dating back to 2007. enables customers to communicate their complaints to © \"CTCJMNCB©?LB©GKNJCKCLRCB©LCU©.MJGAGCQ©GL© the Bank, facilitated by a 24-hour hotline. All grievances are attended to and followed up in line with clearly RFC©?PC?Q©MD©*CE?J©0GQI©+?L?ECKCLR©?LB©DMP© BCdžLCB©NPMACBSPCQ ©1GELGdžA?LR©EPGCT?LACQ©?PC©QS@KGRRCB© +?L?ECKCLR©MD©.MJGAW©-TCPPGBCQ to Corporate Management for appropriate action and Development of a data warehouse enabling the PCTGCUCB©@W©RFC© '0+! ©+C?LUFGJC©RFC© ?LI©?JQM©F?Q©GL© collection, storing and utilising of statistics in a NJ?AC©?©5FGQRJC @JMUGLE©.MJGAW©?JJMUGLE©?LW©2C?K©+CK@CP© RGKCJW©?LB©CLjAGCLR©K?LLCP who has a legitimate concern on an existing or potential © 'LTCQRKCLRQ©UCPC©K?BC©GL©?©\"GQ?QRCP©0CAMTCPW©QGRC© “wrong doing”, by any person within the Bank, to come with regular testing and upgrades. forward voluntarily, and bring such concern to the notice Business Continuity Management- A systems drill of the Board Audit Committee Chairman through Group was carried out on a working day covering Finacle, Company Secretary. Common Database Applications, Finacle Treasury, i-switch Applications and Card Centre operations Measuring Strategic and Reputational Risks among others. We adopt comprehensive scorecards to measure theCOMPLIANCE RISK CVNMQSPC©RM©1RP?RCEGA©?LB©0CNSR?RGML?J©0GQIQ ©2FC© 1RP?RCEGA©0GQI©1AMPCA?PB©F?Q©@CCL©BCTCJMNCB©R?IGLE©!MKNJG?LAC©0GQI©GQ©K?L?ECB©@W©RFC©!MKNJG?LAC©3LGR©MD© into consideration the size, sophistication, nature andRFC© ?LI©FC?BCB©@W©RFC©%PMSN©!MKNJG?LAC©-LjACP ©+MPC© complexity of the Bank’s operations. The scorecard isinformation on Compliance aspects are elaborated in administered at least annually.pages 204 and 205. ©QGKGJ?P©QAMPCA?PB©GQ©?BKGLGQRCPCB©DMP©0CNSR?RGML?J©0GQI ©STRATEGIC AND REPUTATIONAL RISK The scorecard takes into consideration a comprehensive P?LEC©MD©D?ARMPQ©UFGAF©AMSJB©NMRCLRG?JJW©?DžCAR©RFC© ?LIQ©Strategic risks are the potential losses arising from image and reputationthe possibility of the Bank’s future business plans andstrategies being inadequate or inappropriate.
197GROUP RISK MANAGEMENT The Bank’s Board of Directors have access to the Board and Board Sub Committee minutes of theGiven the varying business lines of the Bank’s group companiesQS@QGBG?PGCQ©RFC©EPMSN©CLRGRGCQ©F?TC©BGDžCPGLE©PGQI©NPMdžJCQ ©#?AF©CLRGRW©UGRFGL©RFC©%PMSN©F?Q©GL©NJ?AC©0GQI© Compliance with the Basel Framework+?L?ECKCLR©NMJGAGCQ©QNCAGdžA©RM©GRQ©MUL©MNCP?RGMLQ©?LB©also aligned to the risk framework of the parent entity. The Bank has complied with the regulatory requirements2FC©N?PCLR©NCPQGQRCLRJW©CVCPAGQCQ©MTCPQGEFR©ML©RFC©0GQI© MD© ?QCJ©''©?LB©UGJJ©AMLRGLSC©RM©AMKNJW©UGRF©GLBSQRPW©@CQR©Management framework of the group entities through NP?ARGACQ©?LB©PCESJ?RMPW©ESGBCJGLCQ © ?QCJ©'''©GQ©RFC©J?RCQR©the following; updated version of the framework and implementation © 2FC©%PMSN©0GQI©-LjACP©?LB©%PMSN©!MKNJG?LAC© is expected to commence over the next few years. The Bank remains fully committed to complying with the -LjACP©?PC©PCQNMLQG@JC©DMP©RFC©AMMPBGL?RGML©MD©0GQI© PCOSGPCKCLRQ©MD© ?QCJ©'''©GL©?AAMPB?LAC©UGRF©RFC©0M?B© Management and compliance mechanisms with the Map for the banking industry prepared by the Central subsidiaries. The parent entity nominates Directors to the ?LI©MD©1PG©*?LI? Boards of the group entities depending on the required level of oversight 'L©JGLC©UGRF©RFC©ESGBCJGLCQ©GQQSCB©@W©RFC©PCESJ?RMP© © 2FC© '0+!©NCPGMBGA?JJW©PCTGCUQ©RFC©PGQI©NPMdžJC©MD© RFC© ?LI©?JQM©SNB?RCB©GRQ©'LRCPL?J©!?NGR?J© BCOS?AW© the group entities and makes recommendations to QQCQQKCLR©.PMACQQ©'! .©BMASKCLR?RGML ©2FC©PCJCT?LR© the Board documentation was submitted to the Central Bank for both Bank and Group levels within the stipulated time frame.RISK REGISTERCredit Risk Risk Impact Risk Management / Assessment Risk Mitigating Factors Risk Factor High RatingCredit Risk © )CW©!MKKGRRCCQ© '0+!©!PCBGR© 1. Board approved credit policies/ Medium procedures, framework, annual0GQI©MD© !MKKGRRCCQ©!PCBGR©.MJGAW©0GQI© reviewborrower Delegated authority levels,default ?LB©.MPRDMJGM©0CTGCU©!MKKGRRCC© reviewed regulations, Segregation of duties between loan originator, ©© !PCBGR©0GQI©+?L?ECKCLR©3LGR© 2. BKGLGQRP?RGML©?LB©0GQI © )CW©GLNSR©DPMK©RFC©0GQI© !0+3© Department for pre/post credit risk 3. Structured and standardised 'LBCNCLBCLR©.PC APCBGR©0GQI© CT?JS?RGML©@W©!0+3©DMP©MTCP©0Q © credit sanction process. 100 M. Watch listing, Early Warning ©© 'LRCPL?J©0GQI©0?RGLE ©© 1GEL?JQ©#51©©.MPRDMJGM© management ©© .PC !PCBGR©0GQI©#T?JS?RGML© @W©QNCAG?JGQCB©QR?Dž©?R©!PCBGR© \"CN?PRKCLRQ©?LB©0CEGML?J© ©© -LjACQ © ©© .MQR !PCBGR©KMLGRMPGLE©?LB©*M?L© 0CTGCU©+CAF?LGQK 5.Concentration RiskCredit High ©© 0CTGCU©RFC© ?LIQ©AMLACLRP?RGML© 1. Board approved limits on *MU maximum exposure guidelinesexposure in a number of areas, such as Setting of prudential limits, on maximum exposure, reviewedbeing Top 20 exposure as a % of total 2. annually. ! 1*©ESGBCJGLCQ© ©QGLEJC©concentrated portfolio, product-wise /sector borrower/related party !J?QQGdžA?RGML©MD©@MPPMUCP©©on one or wise, region-wise, collateral - sector/subsector Monitoring of exposure againstfew lending wise etc. ©© the limits and thresholds on a periodic basis.sectors, ©© 'BCLRGDW©NPGLAGN?J©0GQI©D?ARMPQ©groups, UFGAF©?DžCAR©RFC©NMPRDMJGM©?LB© ©©GLQSLjAGCLR© required to be stressed.BGTCPQGdžA?RGML 3. Concentration risk assessed 5. @?QCB©ML©&CPdžLB?FJ© ©&GPQFK?L© 'LBCV©&&'
198 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceRisk Management Risk Impact Risk Management / Assessment Risk Mitigating Factors RiskFactor RatingConcentration Risk Contd.Country Risk ©© 1MTCPCGEL©0GQI©P?RGLE© 6. Trends analysis reported to ©©© +MLGRMPGLE©MD©QNCAGdžA©Q?LARGMLQ© '0+! ©A collection *MUof risks on countries 7. Stress testing / Sensitivityassociated 3. Assessment of the political and analysis results reported towith exposure +?L?ECKCLR©© '0+!©ML©to a foreign economical situations quarterly basis for necessarycountry. action.These risksinclude ©©© *GKGR?RGMLQ©ML©JCLBGLE©©A?NQ©ML© *MUpolitical risk, lending.exchangerate risk, 2. Monitoring of country-wiseeconomic risk, exposuresovereign riskand transferrisk, whichis the risk ofcapital beinglocked upor frozen bygovernmentaction
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